Tourism New Zealand has no contingent assets or liabilities as at 30 June 2017.
In 2016/2017, Tourism New Zealand had provided a written undertaking to the Board of Qualmark New Zealand to provide ongoing
support sufficient to enable Qualmark to meet its obligations when they were due.
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. The Group has tax losses unrecognised that can be used to offset future assessable income of $401,254
Management of risk
Tourism New Zealand has developed a risk management framework and has undertaken a full risk assessment of its business.
Management is required to sign off on a half yearly basis that no new exposures have arisen and that existing risks are being properly
managed. Written policies and procedures exist covering those aspects of business which have the potential to generate risk for
Tourism New Zealand. Adherence to these policies minimises potential risk to Tourism New Zealand. Employees are required as part of
employment contracts to adhere to Tourism New Zealand policies and procedures.
Tourism New Zealand carries comprehensive insurance covering all normal business risks including Public Liability. Tourism New
Zealand has purchased insurance to provide Board members and Officers Liability, Employers Liability and Professional Indemnity
cover for Board members and employees. Tourism New Zealand also provides cover for its staff for offshore travel. Insured values are
reviewed annually and adjusted to reflect changes in business operations.
Significant accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the
reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets,
liabilities, contingent liabilities, revenue and expenses. These judgements and estimates are based on historical experience and
other factors that are reasonable under the circumstances and form the basis for the carrying values of assets and liabilities. Actual
results may differ from these estimates under different assumptions and conditions. Management has identified the following critical
accounting policies for which significant judgements, estimates and assumptions have been made.
Make good provision
A provision has been made for a number of potential future restoration costs relating to make good clauses on four office rental leases.
The calculation of this provision requires assumptions such as the extent, if any, that Landlords will enforce the make good clauses
in the leases and building and demolition cost estimates. These uncertainties may result in future actual expenditure differing from
the amounts currently provided. The provision recognised for each lease is periodically reviewed and updated based on the facts and
circumstances available at the time. Changes to the estimated future costs for make good are recognised in the balance sheet by
adjusting both the expense or asset and provision. The related carrying amounts are disclosed in note 16.