ITF

ITF Trust Annual Report and Financial Statements 2021 18 3. Principal ac vi es The principal ac vi es of the group are the development and administra on of the sport of tennis worldwide. 4. Changes in accoun ng policies New and amended standards adopted by the group The group has applied the following standards and amendments for the first me for their annual repor ng period commencing 1 January 2021: • Covid-19-related rent concessions – amendments to IFRS 16; • Interest rate benchmark reform – phase 2 – amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. Other than the above, the accoun ng policies adopted are consistent with those of the previous financial year. New standards and interpreta ons not yet adopted Certain new accoun ng standards and interpreta ons have been published that are not mandatory for 31 December 2021 repor ng periods and have not been early adopted by the group. These standards are not expected to have a material impact on the group in the current or future repor ng periods and on foreseeable future transac ons. 5. Summary of significant accoun ng policies a) Revenue recogni on Revenue is recognised to the extent that it can be reliably measured in the year to which it relates. The following specific recogni on criteria must also be met before revenue is recognised: i) Subscrip ons and authorisa on fees The annual contribu ons from the ITF member na ons and the official and recognised tennis championships of the ITF are recognised in the year for which they are due. ii) Sponsorship, compe on and television income Sponsorship income is recognised in accordance with the terms of the contract and the accoun ng year to which it relates. Compe on income is recognised in the year in which the compe on took place. Where a compe on spans the year-end, revenue is assigned to the performance obliga ons under the contract associated with the rounds of a compe on and recognised as those rounds take place. Television income is recognised in accordance with the terms of the contract and the accoun ng year to which it relates. iii) Grand Slam Development Fund and Wheelchair Tennis Development Fund income 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. As at 31 December 2021, the Grand Slam Development Fund had a reserve of $2,252,000 (2020: $1,542,000), and the Wheelchair Tennis Development Fund had a reserve of $96,000 (2020: $97,000). The mission of the Grand Slam Development Fund is to support compe ve tennis opportuni es worldwide. It was renamed the Grand Slam Player Development Programme in January 2022. iv) An -doping income An -doping income is recognised in accordance with the terms of the agreement and the accoun ng year to which it relates, where an -doping services are provided for specific events. An -doping income rela ng to penal es is recorded once it is probable that the economic benefit associated with the transac on will flow to the group. The Interna onal Tennis Integrity Agency is responsible for the Tennis An -Doping Programme from January 2022. Notes (continued, forming part of the financial statements)

• Cover