Previous Page  54 / 84 Next Page
Show Menu
Previous Page 54 / 84 Next Page
Page Background

Notes to the Financial Statements

for the year ended 30 June 2017

Note 1

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


Measurement base

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

accounting policies.

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.