ITF

54 ITF FINANCIAL STATEMENTS NOTES (FORMING PART OF THE FINANCIAL STATEMENTS) iii) Grand Slam Development Fund and Wheelchair Tennis Development Fund The Grand Slam Development Fund and Wheelchair Tennis Development Fund income and expenditure are shown through the ITF's income and expenditure statement. Income is recognised when qualifying expenditure is made, with any difference between income and expenditure held on the balance sheet as deferred income or a debtor. As at 31 December 2014, the Grand Slam Development Fund had a reserve of $633,000 (2013: $520,000), and the Wheelchair Tennis Development Fund had a surplus of $82,000 (2013: surplus of $47,000). The mission of the Grand Slam Development Fund is to increase competitive tennis opportunities worldwide. iv) Anti-Doping income Anti-Doping income is recognised in accordance with the terms of the agreement for specific events and the accounting period to which it relates. Anti-Doping income relating to penalties is recorded once it is probable that the economic benefit associated with the transaction will flow to the Group. v) Data Sales income Data Sales income is recognised in accordance with the terms of the contract and the accounting period to which it relates. vi) Technical and Sundry income Technical income is derived from testing tennis equipment and is recognised in accordance with the terms of the agreement and the accounting period to which it relates. Sundry income is derived mainly from recharges to the Grand Slam Board and Tennis Integrity Unit for office and administration costs. Rent is charged and recognised as per the terms of the lease and the accounting period to which it relates. Also included within Technical and Sundry income is iCoach online memberships, and subscription monies for the ITF Foundation which allows members to consult and collaborate with the ITF in the process of manufacturing tennis equipment. vii) Olympic income Olympic income, net of directly attributable expenses, is released to the income and expenditure statement over the four years of the Olympiad, starting in the year the games are held. Note 30 provides further information on Olympic income. viii) Investment income/expenditure and gains/losses on investments Investments are valued at their fair value, which is determined by reference to quoted market bid prices at the balance sheet date. Valuations are provided by the investment managers. Gains or losses arising from this valuation are shown in the consolidated income and expenditure statement in accordance with lAS 39.9. Interest is recognised in the income statement on an accruals basis, and dividend income is recognised when the ITF's right to receive payment is established. b) Currency translation Assets and liabilities in currencies other than US Dollars are translated into US Dollars at appropriate rates of exchange ruling at the balance sheet date. Income and expenditure in such currencies during the year have been translated into US Dollars at the rates of exchange ruling at the dates of the relevant transactions. Exchange differences arising from these translations are recognised in the consolidated income and expenditure statement. Sterling was converted at $1.553/£1 at 31 December 2014 ($1.649/£1at 31 December 2013), for all subsidiaries except Hopman Cup Pty Ltd. In the case of Hopman Cup Pty Ltd, whose activities are recorded in Australian Dollars, income and expenses are converted at the average rate of exchange, US$0.912/AUS$1 (2013: US$0.965/AUS$1), and its assets and liabilities are converted at the closing rate, US$0.816/AUS$1 (2013: US$0.887/AUS$1), for consolidation in these financial statements. The resulting exchange differences are recognised through reserves. c) Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. The cost of the tangible fixed assets is written off in equal instalments over their useful lives as follows: Improvements to leasehold property Over the remaining period of the lease or asset life (if shorter) Computers and Databases 3 years Furniture and Equipment, Technical Equipment 4 years Challenge trophies, which are presented to the winners of the ITF's competitions, including Davis Cup and Fed Cup, are not valued. d) Inventories Inventories are valued at the lower of cost and net realisable value. e) Investments and Other Financial Assets Investments are included on the Balance Sheet on trade date. Investments are valued at their fair value, which is determined by reference to quoted market prices at the balance sheet date, with changes recognised directly in the income and expenditure statement. f ) Trade and Other Receivables Trade and other receivables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses.

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