ITF

58 I ITF FINANCIAL STATEMENTS INTERNATIONAL TENNIS FEDERATION • ANNUAL REPORT AND ACCOUNTS 2015 6. Signifi cant accounting judgements, estimates and assumptions The preparation of the ITF's fi nancial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in future. Judgements – In the process of applying the ITF's accounting policies, management has made the following judgements, apart from those involving estimations, which have the most signifi cant effect on the amounts recognised in the fi nancial statements: Trade receivables valuation – Provisions have been made for those trade receivables where the recoverability is considered uncertain. Provisions – The provision for dilapidations has been calculated using an estimate for the costs that would be payable under the terms of the existing lease. Taxation – Some of the ITF's subsidiaries are subject to routine tax audits and also a process whereby tax computations are discussed and agreed with the proper authorities. Whilst the ultimate outcome of such tax audits and discussions cannot be determined with certainty, management estimates the level of provisions required for both current and deferred tax assets on the basis of professional advice on the nature of current discussions with the authority concerned. Estimates & assumptions – The key sources of estimation uncertainty at the balance sheet date, that have signifi cant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fi nancial year relate to the valuation of hedging instruments and are discussed in note 5(n). Other Professional Tennis department costs include Men's Circuit, Women's Circuit, Offi ciating, Olympics, Beach Tennis, Rules of Tennis, Data Sales, Grand Slam Board Contribution and Tennis Integrity Contribution. 2015 2014 $000 $000 Sponsorship rights 17,636 17,889 Receipts from events 5,539 6,823 Hopman Cup 377 7,108 Television & licensing income 8,002 8,430 31,554 40,250 7. Sponsorship, Competition and Television income 2015 2014 $000 $000 Davis Cup prize money 10,744 10,780 Davis Cup event expenses 3,490 2,703 Fed Cup prize money 3,108 3,307 Fed Cup event expenses 1,665 1,620 Hopman Cup prize money and event expenses 192 6,593 Data Sales activity costs 4,454 3,445 Other Professional Tennis department costs 2,713 2,774 26,366 31,222 8. Sponsorship, Competition and Television income Notes (forming part of the fi nancial statements)

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