ITF

NOTES (FORMING PART OF THE FINANCIAL STATEMENTS) 71 ITF FINANCIAL STATEMENTS 32. Operating leases Non-cancellable operating lease rentals are payable as follows: (f ) Capital management The Group's main assets are its investments and deposits, the management of which is charged to specialist investment managers who operate under investment guidelines which are regularly reviewed by the Directors. There is a combined risk on this asset – firstly, the performance of the investment managers and secondly the performance of the bond and equity markets. The Directors have taken a prudent view of future returns from the investments in their long term financial planning and estimates. The significant lease relates to the ITF offices in Roehampton, UK. The lease runs until February 2023 however it includes an unconditional tenant-only break clause at February 2018. 33. Contingencies There were no contingencies provided for at 31 December 2013. 34. Related parties The ITF is a member organisation and undertakes routine transactions every year with its members such as subscription income and prize money payable for team competitions. Where the Group enters into a transaction with a member organisation which is not routine it shall be disclosed separately in the financial statements. No such transactions arose during the year. 2013 2012 $000 $000 Less than one year 578 115 Between one and five years 1,746 - 2,324 115 70 31. Financial instruments (cont.) Australian dollar: The Group did not enter into forward currency contracts to sell A$ in 2013 (2012: A$650,000). In 2012 the fair value of these hedges, based on the mark to market valuations of the contracts at 31 December 2012, using prices on that date to purchase the same forward contracts, was a liability of $75,000 with a corresponding entry in the income statement. There is no corresponding amount in 2013. The forward exchange contracts are being used to hedge the foreign currency risk of the firm commitments. A movement of $0.01 in the mark to market valuation would result in a change in the fair value of $122,000 on the sterling hedges contracts and $15,000 on the euro hedges. The Group's exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary financial instruments except derivatives when it is based on notional amounts. Sterling Euro US Dollar Other Total $'000 $'000 $'000 $'000 $'000 Cash and cash equivalents 3,450 1,485 6,486 2,438 13,859 Trade receivables 203 923 6,010 745 7,881 Trade payables (460) - - (195) (655) Forward exchange contracts - (91) 1,370 - 1,279 Net exposure 3,193 2,317 13,866 2,988 22,364 31 December 2012 Sterling Euro US Dollar Other Total $'000 $'000 $'000 $'000 $'000 Cash and cash equivalents 264 1,278 27,187 2,608 31,337 Trade receivables 183 668 7,731 1,665 10,247 Trade payables (667) - - (582) (1,249) Forward exchange contracts - (34) 371 (75) 262 Net exposure (220) 1,912 35,289 3,616 40,597 31 December 2013 ITF FINANCIAL STATEMENTS

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