ITF

ITF Trust Annual Report and Financial Statements 2022 19 v) Data sales income Data sales income is recognised in accordance with the terms of the contract and the accoun ng year to which it relates. vi) Technical and sundry income Technical income is derived from the ITF's ball, equipment and court cer fica on programme and is recognised in accordance with the terms of the agreement and the accoun ng year to which it relates. Sundry income is derived mainly from recharges to the Grand Slam Board and Interna onal Tennis Integrity Agency for office and administra on costs. Also included within technical and sundry income is subscrip on monies for the ITF Founda on which enables members to consult and collaborate with the ITF in the process of manufacturing tennis equipment. vii) Olympic income Olympic income received subsequent to the Summer Olympic Games is allocated against the performance obliga on of controlling and direc ng 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 obliga on of developing the sport of tennis worldwide, and recognised evenly over the four years (or three years in the case of Tokyo 2020) of the Olympiad beginning in the year the Olympic Games are held. Note 35 provides further informa on on Olympic income. Income received for other mul -sport events run by the IOC is recognised in the year the event takes place. 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. Valua ons are provided by the investment managers. Gains or losses arising from this valua on 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. c) Currency transla on Assets and liabili es in currencies other than US Dollars are translated into US Dollars at appropriate rates of exchange prevailing at the balance sheet date. Income and expenses in such currencies during the year have been translated into US Dollars at the rates of exchange prevailing at the dates of the relevant transac ons. Exchange differences arising from these transla ons are recognised in the consolidated income and expenditure statement. Sterling was converted at $1.2098 /£1 at 31 December 2022 ($1.3546/£1 at 31 December 2021). In the case of Hopman Cup Pty Ltd, whose ac vi es are recorded in Australian Dollars, income and expenses are converted at the average rate of exchange, US$0.693/AUS$1 (2021 – US$0.751/AUS$1), and its assets and liabili es are converted at the closing rate, US$0.681/AUS$1 (2021 – US$0.727/AUS$1), for consolida on in these financial statements. The resul ng exchange differences are recognised through other comprehensive income. d) Intangible assets – research and development Development expenditure that is directly a ributable to the design and tes ng of iden fiable and unique so ware products controlled by the group is recognised in intangible assets when: it is technically feasible to complete the so ware so that it will be available for use; management intends to complete the so ware and use or sell it; there is an ability to use or sell the so ware; it can be demonstrated how the so ware will generate probable future economic benefits; adequate technical, financial and other resources to complete the development and to use or sell the so ware are available; and the expenditure a ributable to the so ware during its development can be reliably measured. Directly a ributable costs that are capitalised as part of the product include employee costs. Capitalised development costs are recorded as intangible assets and amor sed from the point at which the asset is ready for use. The group amor ses intangible assets with a limited useful life using the straight-line method over 3 years. Research expenditure and development expenditure that do not meet the criteria above are recognised as an expense as incurred.

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