Tourism New Zealand’s capital is its equity, which comprises accumulated funds and other reserves. Equity is represented by net
assets. Tourism New Zealand manages its equity as a by-product of prudently managing revenues, expenses, assets, liabilities,
investments and general financial dealings to ensure that Tourism New Zealand effectively achieves its objectives and purpose, whilst
remaining a going concern.
Tourism New Zealand is subject to the financial management and accountability provisions of the Crown Entities Act 2004, which
impose restrictions in relation to borrowings, acquisition of securities, issuing guarantees and indemnities and the use of derivatives.
Tourism New Zealand purchases a variety of foreign currencies to fund promotional activity offshore. As this is funded in New Zealand
dollars, there is an exposure to foreign exchange risk through the movement of New Zealand dollars against those foreign currencies.
To manage this risk and improve operational flexibility, a foreign exchange reserve was set up in 2009/10 that comprised of the realised
gains from that year to be used solely to offset future realised foreign exchange gains and losses.
Categories of financial assets and liabilities
The carrying amounts of financial assets and liabilities in each of the PBE IPSAS 29 categories are as follows:
Cash and cash equivalents
Total loans and receivables
Fair value through profit and loss held for trading:
Derivative financial instrument assets / (liabilities)
Other financial liabilities:
Invoiced in advance
Total other financial liabilities
There is no capital expenditure contracted for at balance date but not provided for in the financial statements. (2016:Nil)