ITF

ITF Trust Annual Report and Financial Statements 2022 20 5. Summary of significant accoun ng policies (con nued) e) Property, plant and equipment Property, plant and equipment are stated at cost, less accumulated deprecia on. The cost of the tangible fixed assets is wri en off in equal instalments over their useful lives as follows: f) Inventories Inventories are valued at the lower of cost and net realisable value. Where inventories are held for distribu on for no considera on such as development equipment, the carrying amount is held in inventory at cost and is recognised as an expense on distribu on. g) Investments and financial assets held at fair value through profit or loss (FVPL) Investments are included on the Statement of Financial Posi on on trade-date, the date on which the group commits to purchase or sell the asset. Investments are valued at their fair value, which is determined by reference to quoted market prices at the balance sheet date (classified as level 1 in the fair value hierarchy), with changes recognised directly in the income and expenditure statement. Transac on costs of financial assets carried at FVPL are expensed in profit or loss. h) Trade and other receivables Trade and other receivables are recognised ini ally at fair value. Subsequent to ini al recogni on they are measured at amor sed cost using the effec ve interest method, less any impairment losses. Included within prepayments are balances rela ng to Davis Cup and Billie Jean King Cup courtside adver sement banners due to be u lised in the first round of the compe ons in the subsequent year. i) Impairment of financial assets Impairment of financial assets held at FVPL is not considered. For impairment of trade receivables, since 1 January 2018 the group applies the simplified approach permi ed by IFRS 9, which requires expected life me losses to be recognised from ini al recogni on of the receivables, see note 36 for further details. j) Trade and other payables Trade and other payables are recognised ini ally at fair value. Subsequent to ini al recogni on they are measured at amor sed cost using the effec ve interest method. k) Financial income and expenses Financial income and expenses represent bank interest received and paid by the group, respec vely. l) Taxa on The charge for taxa on is based on the result for the year and irrecoverable withholding tax, and takes into account taxa on deferred because of ming differences between the treatment of certain items for taxa on and accoun ng purposes. Deferred tax is recognised, without discoun ng, in respect of all ming differences between the treatment of certain items for taxa on and accoun ng purposes which have arisen but not reversed by the balance sheet date, to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying ming differences can be deducted. m) Leases Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the group. Assets and liabili es arising from a lease are ini ally measured on a present value basis. Lease liabili es include the net present value of the fixed payments, less any lease incen ves receivable. Leasehold buildings Over the remaining period of the lease or asset life (if shorter) Computers and databases 3 years Furniture and equipment, technical equipment 4 years Notes (continued, forming part of the financial statements)

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