ITF

NOTES (CONT.) (FORMING PART OF THE FINANCIAL STATEMENTS) 5. Summary of significant accounting policies a) Revenue recognition i) Subscriptions and authorisation fees ii) Sponsorship, competition and television income Competition income is recognised in the year in which the competition took place. iii) Grand Slam Development Fund and Wheelchair Tennis Development Fund income iv) Anti-doping income v) Data sales income vi) Technical and sundry income vii) Olympic income b) Investment income/expense and gains/losses on investments Investments are valued at their fair value, which is determined by reference to quoted market bid prices at the balance sheet date. Valuations are provided by the investment managers. Gains or losses arising from this valuation are shown in the consolidated income and expenditure statement in accordance with IFRS 9. Interest is recognised in the income statement on an accruals basis, and dividend income is recognised when the ITF's right to receive payment is established. Revenue is recognised to the extent that it can be reliably measured in the year to which it relates. The following specific recognition criteria must also be met before revenue is recognised: The annual contributions from the ITF member nations and the official and recognised tennis championships of the ITF are recognised in the year for which they are due. The Grand Slam Development Fund and Wheelchair Tennis Development Fund income and expenditure are shown through the ITF's income and expenditure statement. Income is recognised when qualifying expenditure is made, with any difference between receipts and expenditure held on the balance sheet as deferred income or a debtor. Sponsorship income is recognised in accordance with the terms of the contract and the accounting year to which it relates. Television income is recognised in accordance with the terms of the contract and the accounting year to which it relates. Where a competition spans the year-end, revenue is assigned to the performance obligations under the contract associated with the rounds of a competition and recognised as those rounds take place. As at 31 December 2020, the Grand Slam Development Fund had a reserve of $1,542,000 (2019: $1,261,000), and the Wheelchair Tennis Development Fund had a reserve of $97,000 (2019: $45,000). Technical income is derived from testing tennis equipment and is recognised in accordance with the terms of the agreement and the accounting year to which it relates. Sundry income is derived mainly from recharges to the Grand Slam Board and Tennis Integrity Unit (now International Tennis Integrity Agency) for office and administration costs. Also included within technical and sundry income is subscription monies for the ITF Foundation which allows members to consult and collaborate with the ITF in the process of manufacturing tennis equipment. Olympic income received subsequent to the Summer Olympic Games is allocated against the performance obligation of controlling and directing the tennis event at the Games on a cost plus margin basis and recognised in that year. The remaining income is allocated using the residual approach to the performance obligation of developing the sport of tennis worldwide and recognised evenly over the four years of the Olympiad beginning in the year the Summer Olympic Games are held. Note 34 provides further information on Olympic income. Income received for other multi-sport events run by the IOC is recognised in the year the event takes place. Data sales income is recognised in accordance with the terms of the contract and the accounting year to which it relates. Anti-doping income is recognised in accordance with the terms of the agreement and the accounting year to which it relates, where anti-doping services are provided for specific events. Anti-doping income relating to penalties is recorded once it is probable that the economic benefit associated with the transaction will flow to the group. The mission of the Grand Slam Development Fund is to support competitive tennis opportunities worldwide. 15

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