ITF

6.Significant accounting judgements, estimates and assumptions The preparation of the ITF's financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in future. Judgements In the process of applying the ITF's accounting policies, management has made the following judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements: Trade receivables valuation Provisions have been made for those trade receivables where the recoverability is considered uncertain. Provisions The provision for dilapidations has been calculated using an estimate for the costs that would be payable under the terms of the existing lease. Taxation Some of the ITF's subsidiaries are subject to routine tax audits and also a process whereby tax computations are discussed and agreed with the proper authorities. Whilst the ultimate outcome of such tax audits and discussions cannot be determined with certainty, management estimates the level of provisions required for both current and deferred tax assets on the basis of professional advice on the nature of current discussions with the authority concerned. Estimates & assumptions The key sources of estimation uncertainty at the balance sheet date, that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate to the valuation of hedging instruments and are discussed in note 5(m). 7.Sponsorship, Competition and Television income Sponsorship rights 2012 2011 $000$000 21,11323,798 Receipts from events 4,8244,616 Hopman Cup 6,6246,748 Television & licensing income 7,2327,834 8. Professional Tennis 39,79342,996 2012 2011 $000$000 10,365 10,095 Davis Cup event expenses 2,529 2,665 Fed Cup prize money 3,0572,969 Fed Cup event expenses 1,5001,430 Hopman Cup prize money and event expenses 6,4026,026 Other Professional Tennis department costs 2,5472,171 Davis Cup prize money 26,400 25,356 Other Professional Tennis department costs include Men's Circuit, Women's Circuit, Officiating, Beach Tennis, Rules of Tennis, Grand Slam Committee Contribution and Tennis Integrity Contribution. ITF FINANCIAL STATEMENTS 51

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