Issue link: http://itf.uberflip.com/i/1503947
ITF Trust Annual Report and Financial Statements 2022 22 5. Summary of significant accoun ng policies (con nued) o) Deriva ve financial instruments and hedging (con nued) When forward contracts are used to hedge forecast transac ons, the group designates the full change in fair value of the forward contract (including forward points) as the hedging instrument. The gains or losses rela ng to the effec ve por on of the change in fair value of the en re forward contract are recognised in the cash flow hedge reserve within equity. When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accoun ng, any cumula ve deferred gain or loss in equity at that me remains in equity un l the forecast transac on occurs. When the forecast transac on is no longer expected to occur, the cumula ve gain or loss and deferred costs of hedging that were reported in equity are reclassified to profit or loss. 6. Significant accoun ng judgements, es mates and assump ons The prepara on of the ITF's financial statements requires management to make judgements, es mates and assump ons that affect the reported amounts of revenues, expenses, assets and liabili es, and the disclosure of con ngent liabili es, at the repor ng date. However, we do not consider there to be any cri cal es mates or judgements at the repor ng date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabili es within the next financial year. 7. Sponsorship, compe on and television income 2022 $000 2021 $000 Davis Cup licence fee 32,298 19,724 Billie Jean King Cup Finals hos ng fee – 3,000 Sponsorship rights 7,928 5,660 Receipts from events 5,280 3,665 Hopman Cup income – 250 Media rights and licensing income 2,651 2,500 Billie Jean King Cup unusual income 12,577 – 60,734 34,799 Notes (continued, forming part of the financial statements) Billie Jean Cup unusual income In 2021, the ITF filed a Request for Arbitra on with the Court of Arbitra on for Sport (CAS) regarding the terminated Billie Jean King Cup Finals Budapest hos ng agreement. As a result of the CAS hearing, the ITF was awarded $20.0m, of which $8.0m had already been received, plus interest for late payment. The group accounts recognise the net $12.0m plus interest of $0.6m, received in the 2022 financial year, as unusual income.