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Note 23

Capital management

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.

Note 24

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:

Group

Parent

2017

$000s

2016

$000s

2017

$000s

2016

$000s

Financial assets:

Cash and cash equivalents

4,927

5,261

4,770

4,903

Receivables

961

1,294

918

1,106

Total loans and receivables

5,888

6,555

5,688

6,009

Fair value through profit and loss held for trading:

Derivative financial instrument assets / (liabilities)

(1,280)

(1,633)

(1,280)

(1,633)

Other financial liabilities:

Creditors

977

1,137

886

1,088

Invoiced in advance

337

703

125

483

Total other financial liabilities

1,314

1,840

1,011

1,571

Note 25

Capital commitments

There is no capital expenditure contracted for at balance date but not provided for in the financial statements. (2016:Nil)

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