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.
(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:
4 – 5 years
Furniture and fittings
5 – 8 years
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
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
(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.
Inventories are valued at the lower of cost and net realisable
( 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
(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
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.
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.
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
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