ITF

NOTES (FORMING PART OF THE FINANCIAL STATEMENTS) 53 ITF FINANCIAL STATEMENTS 1. Basis of preparation The consolidated financial statements have been prepared on a going concern basis under the historical cost convention as modified by fair value accounting for forward currency contracts and investments, in accordance with IFRS 7. To make the distinction between operating and investing activities clearer, the Consolidated Income Statement separately shows income and expenses related to operations and to investing activities, i.e. the investment portfolio. The directors have prepared these statements as they are required by the member nations. Statement of compliance The consolidated financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards. The functional and presentational currency of the ITF Trust is US Dollars and all values are rounded to the nearest thousand ($000) except when otherwise indicated. 2. Basis of consolidation The consolidated financial statements comprise the financial statements of the subsidiaries of ITF Trust as at 31 December each year. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, with the exception of Hopman Cup Pty Ltd which has a year end reporting date of 31 March, and using consistent accounting policies. The results of Hopman Cup Pty Ltd from 1 January 2013 to 31 December 2013 have been consolidated in these financial statements. All intra group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in full. The ITF Trust is domiciled in the Bahamas. The office of the ITF Trust is PO Box N-272, Nassau, Bahamas. The Board of Directors, which is responsible for the overall management of the ITF, including its strategic direction, holds its meetings outside the UK. The following wholly owned subsidiaries are included in the consolidated financial statements: Country of registration ITF Limited Bahamas ITF Licensing (UK) Limited UK Roehampton Investments Limited Bahamas Hopman Cup Pty Limited Australia Hopman Cup Pty Ltd is a wholly owned subsidiary of ITF Licensing (UK) Ltd. The South African Tennis Association Training Centre, a wholly owned subsidiary of ITF Limited, closed in October 2013. It has not been consolidated on the grounds that the numbers are immaterial to the group accounts. The Wheelchair Tennis Foundation Netherlands, a venture jointly underwritten by ITF Limited and the Netherlands Tennis Federation, has not been consolidated on the grounds that the numbers are immaterial to the group accounts. The principal place of business of the ITF Trust is Bank Lane, Roehampton, London SW15 5XZ. 3. Principal activities The principal activities of the group are the development and administration of the game of tennis worldwide. 4. Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial year. 5. Summary of significant accounting policies a) Revenue recognition Revenue is recognised to the extent that the revenue can be reliably measured in the year to which it relates. The following specific recognition criteria must also be met before revenue is recognised: i) Subscriptions & authorisation fees The annual contributions from the ITF member nations and the Official and Recognised Tennis Championships of the ITF are recognised in the period for which they are due. ii) Sponsorship, competition & television income Sponsorship income is recognised in accordance with the terms of the contract and the accounting period to which it relates. Television income is recognised on delivery of the programmes to broadcasters in accordance with the terms of the contract. CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31ST DECEMBER 2013 Note 2013 2012 $000 $000 Cash flows from operating activities Surplus for the year 3,358 3,324 Adjustments for: Depreciation, amortisation and impairment 22 1,533 1,597 (Increase)/decrease in value of investments (2,715) (2,172) Financial income (781) (684) Foreign exchange loss (419) 51 (Gain) on sale of investments (197) (254) Taxation 441 374 1,220 2,236 Decrease/(increase) in trade and other receivables 3,101 2,911 (Increase)/decrease in inventories (1) 51 Increase/(decrease) in trade and other payables 991 (1,358) (Decrease)/increase in deferred income (7,008) 16,505 (1,697) 20,345 Tax suffered (441) (374) Net cash from operating activities (2,138) 19,971 Cash flows from investing activities Proceeds from sales of investments 17,331 9,125 Interest and dividends received 781 684 Acquisition of property, plant and equipment 22 (1,338) (1,714) Amounts placed on Deposits (Olympics) (14,589) 3,863 Acquisition of investments (17,417) (9,863) Net cash from investing activities (15,232) 2,095 Cash flows from financing activities Interest paid - - Net cash from financing activities - - Net increase in cash and cash equivalents (17,370) 22,066 Cash and cash equivalents at 1 January 31,719 9,691 Effects of exchange rate fluctuations on cash held (86) (38) Cash and cash equivalents at 31 December 2013 14,263 31,719 Being: Cash and cash equivalents per the balance sheet 13,859 31,337 Other short term deposits 26 404 382 Cash and cash equivalents at 31 December 2013 14,263 31,719 52 ITF FINANCIAL STATEMENTS

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