ITF

NOTES (CONT.) (FORMING PART OF THE FINANCIAL STATEMENTS) 8. Revenue from contracts with customers (a) Disaggregation of revenue from contracts with customers Point in time Over time Point in time Over time $000 $000 $000 $000 Subscriptions and authorisation fees 697 2,337 940 2,270 Sponsorship, competition and television 1,994 3,878 7,617 49,227 Data sales - 6,300 - 12,600 Development Fund income (GSDF and WTDF) 747 - 2,801 - Olympics - - - 5,774 Anti-doping 369 2,270 18 4,599 Other income 1,279 446 1,667 1,204 5,086 15,231 13,043 75,674 (b) Assets and liabilities related to contracts with customers The group has recognised the following assets and liabilities related to contracts with customers: 2020 2019 $000 $000 Current contract assets (see note 28) 1,590 5,793 Current contract liabilities 18,655 20,446 Non-current contract liabilities - - Total contract liabilities (see note 32) 18,655 20,446 9. Professional tennis 2020 2020 2019 2019 $000 $000 $000 $000 Operating Strategic Operating Strategic Davis Cup participation payments 7,010 - 20,757 - Davis Cup event expenses 1,617 - 3,130 253 Billie Jean King Cup participation payments 2,925 - 6,792 - Billie Jean King Cup event expenses 1,916 - 2,675 475 Hopman Cup expenses 3 - 22 - Data sales activity costs 2,757 - 9,038 - Other Professional Tennis department costs 4,682 - 7,639 - 20,910 - 50,053 728 2019 Timing of revenue recognition The group derived revenue from the transfer of goods and services over time and at a point in time for the following revenue streams: Other Professional Tennis department costs include ITF World Tennis Tour (men's, women's, juniors), Uniqlo Wheelchair Tennis Tour, ITF Seniors Tour, officiating, Olympic and Paralympic Games, ITF Beach Tennis Tour, data sales, Grand Slam Board contribution and Tennis Integrity Unit (now International Tennis Integrity Agency) contribution. Timing of revenue recognition 2020 The group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money. Contract assets decreased in line with the decreased activity and revenue of the group due to the global pandemic. Contract liabilities decreased with the release of the remaining Olympic deferred income arising from Rio 2016 which was not replaced by Tokyo 2020 which was postponed. Remaining contract liabilities represent revenue deferred due to the postponement of the ITF's flagship competitions. In 2020, $17.4m was recognised as revenue that was included as a contract liability at the beginning of the year (2019: $39.4m). 20

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