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when the deferred income tax asset relating to the

deductible temporary difference arises from the initial

recognition of an asset or liability in a transaction that is not

a business combination and, at the time of the transaction,

affects neither the accounting profit or loss nor taxable profit

or loss; or

when the deductible temporary difference is associated

with investments in subsidiaries, associates or interests

in joint ventures, in which case a deferred tax asset is

only recognised to the extent that it is probable that the

temporary difference will reverse in the foreseeable future

and taxable profit will be available against which the

temporary difference can be utilised.

The carrying amount of deferred income tax assets is reviewed

at each Statement of Financial Position date and reduced to the

extent that it is no longer probable that sufficient taxable profit

will be available to allow all or part of the deferred income tax

asset to be utilised.

Unrecognised deferred income tax assets are reassessed at each

Statement of Financial Position date and are recognised to the

extent that it has become probable that future taxable profit will

allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the

tax rates that are expected to apply to the year when the asset

is realised or the liability is settled, based on tax rates (and tax

laws) that have been enacted or substantively enacted at the

Statement of Financial Position date.

Deferred tax assets and deferred tax liabilities are offset only if a

legally enforceable right exists to set off current tax assets against

current tax liabilities and the deferred tax assets and liabilities

relate to the same taxable entity and the same taxation authority.

(p) Other taxes

Revenues, expenses and assets are recognised net of the amount

of GST except:

where the GST incurred on a purchase of goods and services

is not recoverable from the taxation authority, in which case

the GST is recognised as part of the cost of acquisition of the

asset or as part of the expense item as applicable; and

receivables and payables are stated with the amount of GST

included.

The net amount of GST recoverable from, or payable to, the

taxation authority is included as part of receivables or payables in

the Statement of Financial Position.

Cash flows are included in the Statement of Cash Flows on a gross

basis and the GST component of cash flows arising from investing

and financing activities, which is recoverable from, or payable to,

the taxation authority are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount

of GST recoverable from, or payable to, the taxation authority.

(q) Financial instruments

Tourism New Zealand uses derivative financial instruments such

as foreign currency contracts to manage its exposure to foreign

exchange risk arising from its operational activities. Tourism New

Zealand does not hold or issue these financial instruments for

Revenue from exchange transactions

Sales and partnership revenue

Revenue includes contributions from partners and recharges

to customers to recover full cost of expenses incurred on their

behalf. The revenue from the such supply of goods and services

is recognised when the significant risks and rewards of ownership

of the goods have passed to the buyer and can be measured

reliably. Risks and rewards are considered passed to the buyer at

the time of delivery of the goods to the customer.

Revenue from the supply of services is recognised on a straight

line basis over the specified period for the service unless an

alternative method better represents the stage of completion of

the transaction.

Interest

Interest revenue is recognised as interest accrues using the

effective interest method. This is a method of calculating the

amortised cost of a financial asset and allocating the interest

income over the relevant period using the effective interest rate,

which is the rate that exactly discounts estimated future cash

receipts through the expected life of the financial asset to the net

carrying amount of the financial asset.

(o) Income tax

Tourism New Zealand is exempt from income tax under the

New Zealand Tourism Board Act 1991. Tourism New Zealand’s

subsidiaries are subject to income tax.

Current tax assets and liabilities for the current and prior periods

are measured at the amount expected to be recovered from or

paid to the taxation authorities based on the current period's

taxable income. The tax rates and tax laws used to compute the

amount are those that are enacted or substantively enacted by

the Statement of Financial Position date.

Deferred income tax is provided on all temporary differences at

the Statement of Financial Position date between the tax bases

of assets and liabilities and their carrying amounts for financial

reporting purposes.

Deferred income tax liabilities are recognised for all taxable

temporary differences except:

when the deferred income tax liability arises from the

initial recognition of goodwill or of an asset or liability in a

transaction that is not a business combination and that, at

the time of the transaction, affects neither the accounting

profit or loss nor taxable profit or loss; or

when the taxable temporary difference is associated with

investments in subsidiaries, associates or interests in joint

ventures, and the timing of the reversal of the temporary

difference can be controlled and it is probable that the

temporary difference will not reverse in the foreseeable

future.

Deferred income tax assets are recognised for all deductible

temporary differences, carry-forward of unused tax credits and

unused tax losses, to the extent that it is probable that taxable

profit will be available against which the deductible temporary

differences and the carry-forward of unused tax credits and

unused tax losses can be utilised, except:

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