Notes to the Financial Statements
for the year ended 30 June 2017
Statement of accounting policies for the year ended 30 June 2017
(a) Reporting Entity
Tourism New Zealand is a Crown entity as defined by the Crown
Entities Act 2004 and is domiciled in New Zealand. Tourism New
Zealand’s primary objective is to improve tourism’s contribution
to economic growth by increasing the value of international
visitors to New Zealand.
Tourism New Zealand does not operate to make a financial return.
For the purposes of financial reporting, Tourism New Zealand is
classified as a Public Benefit Entity.
The financial statements for Tourism New Zealand are for the
year ended 30 June 2017, and were approved by the Board on
24 October 2017.
(b) Basis of preparation
The financial statements have been prepared on a going concern
basis, and the accounting policies have been applied consistently
throughout the period.
Statement of compliance
The financial statements have been prepared in accordance with
the requirements of the Crown Entities Act 2004, which includes
the requirement to comply with generally accepted accounting
practice in New Zealand (NZ GAAP). The financial statements
have been prepared in accordance with Tier 1 PBE accounting
The financial statements have been prepared on a historical cost
basis modified by the revaluation of certain assets and liabilities
as identified in this statement of accounting policies.
The financial statements are presented in New Zealand dollars
and all values are rounded to the nearest thousand dollars
($000). The functional currency is New Zealand dollars.
(c) Accounting standards and interpretations issued but
not yet effective
In 2015, the External Reporting Board issued Disclosure Initiative
(Amendments to PBE IPSAS 1), 2015 Omnibus Amendments to PBE
Standards, and Amendments to PBE Standards and Authoritative
Notice as a Consequence of XRB A1 and Other Amendments.
These amendments apply to PBEs with reporting periods
beginning on or after 1 January 2016. Tourism New Zealand has
applied these amendments in preparing its 30 June 2017 financial
(d) Basis of consolidation
The consolidated financial statements comprise the financial
statements of New Zealand Tourism Board trading as Tourism
New Zealand and its subsidiaries as at 30 June each year (the
Subsidiaries are combined using the acquisition method of
combination. The financial statements of subsidiaries are
prepared for the same reporting period as the parent entity, using
consistent accounting policies.
Adjustments are made to bring into line any dissimilar accounting
policies that may exist.
All intercompany balances and transactions, including unrealised
profits arising from intra-group transactions, have been
eliminated in full.
Subsidiaries are consolidated from the date on which control is
transferred to the Group and cease to be consolidated from the
date on which control is transferred out of the Group.
Where there is loss of control of a subsidiary, the consolidated
financial statements include the results for the part of the
reporting period during which Tourism New Zealand has control.
(e) Investment in associate
The Group's investment in associate is accounted for under
the equity method of accounting in the consolidated financial
An associate is an entity in which the Group has significant
influence and which is not a subsidiary nor a joint venture.
The annual financial statements of the associate are used by the
Group to apply the equity method. The reporting dates of the
associate and the Group are identical and both use consistent
The investment in the associate is carried in the balance sheet
at cost plus post-acquisition changes in the Group's share of
net assets of the associate, less any impairment in value. The
consolidated income statement reflects the Group's share of the
results of operations of the associate.
Where there has been a change recognised directly in the
associate’s equity, the Group recognises its share of any
changes and discloses this, when applicable in the consolidated
statement of changes in equity.
(f) Foreign currency
Transactions denominated in foreign currency are recorded in
NZ Dollars by applying exchange rates that approximate rates
prevailing at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies
are translated at the rate of exchange ruling at the balance sheet
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.