ITF

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, including the investment portfolios. 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 2014 to 31 December 2014 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 of ITF Limited, in their capacity as Advisory Committee to the ITF Trust, are responsible for the overall management of the ITF, including its strategic direction, holding 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 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 it 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 and 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 and 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. Competition income is recognised in the period in which the competition took place. NOTES (FORMING PART OF THE FINANCIAL STATEMENTS) ITF FINANCIAL STATEMENTS 53

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