ITF

18 2. Basis of consolida on (con nued) Joint ventures Interest in joint ventures are accounted for using the equity method of accoun ng, the investments are ini ally recognised at cost and adjusted therea er to recognise the groups share of the post-acquisi on profits or losses of the investee in the consolidated income statement, and the group's share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from joint ventures are recognised as a reduc on in the carrying amount of the investment. Where the group's share of losses in an equity-accounted investment equals or exceeds its interest in the en ty, including any other unsecured long-term receivables, the group does not recognise further losses, unless it has incurred obliga ons or made payments on behalf of the other en ty. Unrealised gains on transac ons between the group and its joint ventures are eliminated to the extent of the group's interest in these en es. Unrealised losses are also eliminated unless the transac on provides evidence of an impairment of the asset transferred. Accoun ng policies of equity-accounted investees are changed where necessary to ensure consistency with the policies adopted by the group. The carrying amount of equity-accounted investments is tested for impairment whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. 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 amendments for the first me for their annual repor ng period commencing 1 January 2023: • IFRS 17 Insurance Contracts • Disclosure of Accoun ng Policies – Amendments to IAS 1 and IFRS Prac ce Statement 2 • Defini on of Accoun ng Es mates – Amendments to IAS 8; and • Deferred Tax related to Assets and Liabili es arising from a Single Transac on – Amendments to IAS 12 The amendments listed above did not have any impact on the amounts recognised in the financial statements. 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 2023 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 and Television income is recognised in accordance with the terms of the contract and the accoun ng year to which it relates. NOTES (CONTINUED, FORMING PART OF THE FINANCIAL STATEMENTS) Notes

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