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Monetary assets and liabilities denominated in foreign currencies

are translated at the rate of exchange ruling at the balance sheet

date.

Exchange gains and losses are recognised in the Statement of

comprehensive revenue and expense.

Non-monetary items that are measured in terms of historical cost

in a foreign currency are translated using the exchange rate as at

the date of the initial transaction.

(g) Property, plant and equipment

Plant and equipment is stated at cost less accumulated

depreciation and any impairment in value.

Depreciation is calculated on a straight-line basis over the

estimated useful life of the asset as follows:

Office equipment

5 years

Motor vehicles

4 – 5 years

Furniture and fittings

5 – 8 years

Computer equipment

3 years

Leasehold improvements

Up to term of the lease

Realised gains and losses arising from the disposal of property,

plant and equipment are recognised in the Statement of

comprehensive revenue and expense in the period in which the

transaction occurs.

Impairment

The carrying values of plant and equipment are reviewed for

impairment when events or changes in circumstances indicate

the carrying value may not be recoverable.

If any such indication exists and where the carrying values exceed

the estimated recoverable amount, the assets are written down

to their recoverable amount. Losses resulting from impairment

are reported in the Statement of comprehensive revenue and

expense.

(h) Intangible assets

Intangible assets are recorded at cost at acquisition. Where there

is no active market for these assets, or they are determined to

hold no future economic benefit, they are written off in the year

of acquisition. Tourism New Zealand has no intangible assets with

an infinite life.

The useful life of Intangible assets are estimated at between three

and eight years.

Research costs are expensed as incurred.

(i) Inventories

Inventories are valued at the lower of cost and net realisable

value.

( j) Trade and other receivables

Trade receivables are recognised and carried at original invoice

amount less an allowance for any uncollectible amounts.

An estimate for doubtful debts is made when collection of the

full amount is no longer probable. Bad debts are written off when

identified.

(k) Cash and cash equivalents

Cash and short-term deposits in the Statement of Financial

Position comprise cash at bank and in hand and short-term

deposits with an original maturity of three months or less.

For the purposes of the Statement of Cash Flows, cash and

cash equivalents consist of cash and cash equivalents as

defined above.

(l) Provisions

Provisions are recognised when the Group has a present

obligation (legal or constructive) as a result of a past event, and

it is probable that an outflow of resources embodying economic

benefits will be required to settle the obligation and a reliable

estimate can be made of the amount of the obligation.

Where the Group expects some or all of a provision to be

reimbursed, for example under an insurance contract, the

reimbursement is recognised as a separate asset but only when

the reimbursement is virtually certain. The expense relating to

any provision is presented in the Statement of comprehensive

revenue and expense net of any reimbursement.

If the effect of the time value of money is material, provisions are

determined by discounting the expected future cash flows at a

rate that reflects current market assessments of the time value of

money and, where appropriate, the risks specific to the liability.

Where discounting is used, the increase in the provision due to

the passage of time is recognised as a finance cost.

(m) Leases

The determination of whether an arrangement is or contains a

lease is based on the substance of the arrangement and requires

an assessment of whether the fulfilment of the arrangement

is dependent on the use of a specific asset or assets and the

arrangement conveys a right to use the asset.

Leases where the lessor retains substantially all the risks and

benefits of ownership of the asset are classified as operating

leases. Operating lease payments are recognised as an expense

in the Statement of comprehensive revenue and expense on a

straight-line basis over the lease term.

The Group does not enter into finance leases.

(n) Revenue

Revenue is recognised to the extent that it is probable that the

economic benefits will flow to the Group and the revenue can

be reliably measured. The specific recognition criteria described

below must also be met before revenue is recognised.

Revenue from non-exchange transactions

Appropriation received from the Crown

Grants received from the Crown are recognised as revenue on

receipt.

Sales and other revenue

Revenue includes fees received to attend offshore trade events

and familiarisations in New Zealand, and fees received to become

part of an Approved Destination Status programme. The revenue

from such transactions does not approximately equal the value

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