Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697789127544.pdf (Fiji)
Annual Report 2014 1 CONTENT PAGE Letter to the Minister About Tourism Fiji Summary of Performance 2014 2014 Key Visitor Statistics Activities Undertaken in 2014 Corporate Governance Financial Reports I II- III IV - V VI - VII VIII-XI XII XIII 25 July 2019 Hon.
Premila Kumar Minister for lndustry,Trade & Tourism, Local Govt, Housing & Community Development Level 3, Civic Towers Victoria Parade SUVA Dear Honourable Minister, RE: TOURISM FIJI ANNUAL REPORTS FOR 2014 On behalf of the Tourism Fiji board of Directors, I am pleased to present the Company’s Annual Report for 2014 and as required under Section 58 of the Public Enterprise Act, 2019.

The Report incorporates the organisation’s operational achievement and audited accounts for the year ending December 2014.
The Board of Directors, Management and staff would like to express their sincere appreciation to you and the Government for its on-going support and look forward to continuing this in 2020 and beyond.

Yours sincerely, Andre Viljoen CHAIRMAN I II ABOUT TOURISM FIJI Who are we?

Located in the heart of the South Pacific, Fiji is blessed with 333 tropical islands and is a popular tourism destination for visitors from around the world.
Tourism Fiji is a statutory body fully funded by the Fiji Government and is the destination marketing arm of the Fijian Government.
Tourism Fiji is governed by the Tourism Fiji Act 2009 which specifies its role as: “Tourism Fiji is to ensure that the Fiji Islands is promoted and marketed as a tourist destination for the purpose of maximizing sustainable and long-term benefits to the Fiji Islands” The tourism industry has contributed significantly to Fiji’s economy and is the country’s largest foreign exchange earner.
The industry provides employment directly and indirectly to many Fijian people and is the fastest growing industry in terms of employment.

In 2014, Fiji welcomed a record 692,350 international visitors.

Tourism earnings was valued at $1.5bn by the Fiji Bureau of Statistics.

The importance of tourism to the Fiji economy drives Tourism Fiji to continue to deliver world-class marketing and promotional activities to attract more visitors to our shores.
Our Markets and Offices Tourism Fiji has a global team that undertake marketing and promotional activities to attract international visitors to Fiji.
Our offices are located in: - - - - Australia New Zealand North America (USA & Canada) South Korea We have Market Representatives in: - - - - United Kingdom Europe China India III SUMMARY OF TOURISM FIJI’S PERFORMANCE 2014 The launch of the “Fiji – where happiness find you” brand in 2013 was well received by industry partners so the key focus for 2014 was to deliver a strong program of marketing activities to build on the brand proposition.
The organization set up four strategic pillars of focus for the year: Pillar 1: Develop the ‘Fiji – where happiness finds you’ brand substance and delivery - - - - - Overarching Brand Proposition Brand Activity Develop Niche Proposition Media/ PR effectiveness Further Develop the ‘Fiji – where happiness finds you’ brand positioning Pillar 2: Enhance business capability - - - - Research Industry Communication Team Development Enhance business capability Pillar 3: Grow industry focus through engagement/training - - - - MATAI Programme Fijian Tourism Expo (FTE) Trade Famils (educational) Grow industry focus through engagement/training Pillar 4: Develop online capability and delivery - - New website Develop online capability and delivery From a marketing perspective, key objectives were set around increasing the length of visitor stays, increasing visitors spend and increasing geographical distribution of visitors.
In May, Tourism Fiji also launched the first Fijian Tourism Expo (FTE).

The Expo focused on showcasing the Fijian tourism industry by bringing international buyers and trade media to Fiji to directly engage with Fiji’s tourism industry partners.

IV 2014 VISITOR ARRIVALS IN NUMBERS In 2014 visitor arrivals increased by 5% to reach a new record of 692,630 visitors arrivals.

Visitor earnings also increased by 14% to reach $1.5bn in 2014.
Australia contributed 50% of total arrivals, followed by New Zealand (18%), North America (11%), Continental Europe (4%), China + Hong Kong (4%), United Kingdom (2%), Rest of Asia (2%), Japan (1%), India & Singapore (0.5%) and all other countries at 7%.
In terms of growth by volume, New Zealand contributed the most at 15,590 additional visitors followed by Australia (9,654), North America (6,813), China + Hong Kong (3,889) and United Kingdom, Continental Europe, India and Singapore contributing a combined 1,896.

Markets that declined were Japan (1,442), Singapore (156) and all other countries (2,480).

V 2014 KEY VISITOR STATISTICS In 2014 Tourism Fiji saw an increase in the percentage of visitors to Fiji coming for a holiday to 89%.
Business travel was undertaken by 4% of visitors with the remaining visitors arriving for a number of different reasons.
BY PURPOSE OF VISIT SOURCE: 2014 INTERNATIONAL VISITOR SURVEY REPORT The average length of stay varied depending on purpose of visit, however, holidaymakers stayed for an average of 7 days which was consistent with the previous year BY PURPOSE OF VISIT VI SOURCE: 2014 INTERNATIONAL VISITOR SURVEY REPORT 2014 KEY VISITOR STATISTICS Length of stay varies by country with visitors from longer haul marketing tending to stay longer than their Australian and New Zealand counterparts, with the exception of the USA market who favour shorter than average stays BY COUNTRY Average spend grew in 2014 in most markets, except New Zealand.
Overall average spend grew by 8% in 2014.

SOURCE: 2014 INTERNATIONAL VISITOR SURVEY REPORT 2014 AVERAGE SPEND BY COUNTRY SOURCE: 2014 FIJI BUREAU OF STATISTICS VISITOR EARNINGS VII ACTIVITIES UNDERTAKEN IN 2014 Fijian Tourism Expo The inaugural Fijian Tourism Expo was successfully launched in 2014.
The event was sold out with the attendance of: o o o o 265 exhibitors 145 buyers, 49 trade services delegates, 13 Media Registrations opened in October 2013 and Tourism Fiji exceeded their targeted 100 exhibitor booths with a confirmed 111 booths and 265 sellers registered.
One of the key highlights for visitors was the Ministry of Trade sponsored Fijian Made exhibition which showcased local products Of the 36 hosted buyers, 6 were from Australia, 1 from HK/China, 11 from UK/EU, 5 from Korea, 7 from NZ and 6 from USA.

In conjunction with FTE, Tourism Fiji also ran a consumer campaign to win the Ultimate Wedding Package.

The Pinterest “Win a Wedding” campaign for FTE performed well.
544 entries were received, with the reach of the campaign across Facebook and Pinterest totalling 1.4m people.

Entries and posts on Facebook generated almost 25,000 ‘Likes’.

Niche Markets Initial niche propositions were workshopped by the leadership team in December with a key focus on Weddings, Adventure, Golf and Diving.

This work helped to shape PR and famil plans for the course of the year.
Strong PR results were achieved, with significant exposure in New Zealand via Weddings Magazine, The Cut (golf magazine) and Canvas (New Zealand Herald weekend supplement) being highlights.

The media famil programme focussed on showcasing many of Fiji’s niche experiences through working with partners.

In early February, a media famil in conjunction with the PGA International was held which included golf media representatives from Australia, New Zealand, USA and China.
In the US, the focus on Niche extended to attendance at a number of consumer shows, including the Adventure Show in Chicago and Santa Clara and also the Seattle Wedding Show.

VIII Matai Programme In November 2014, Tourism Fiji launched its new online travel agent specialist training programme.

The new Fiji Matai Specialist Programme and website is the destination training programme for tourism partners selling Fiji.
“Matai” in Fijian means to be knowledgeable or an expert in something and the new programme was expected to enable Matai Agents and Matai Specialists to truly become ‘Happiness Specialists’ by joining the innovative programme.

The new site launched with improved navigation and included extensive educational content on Fiji.
The intent is that members would also receive exclusive incentives, monthly e-newsletters featuring updates on Fiji and its tourism industry, eligibility for exciting familiarisation trips, online training updates and the chance to receive excellent programme rewards.

As well as a new online home, the programme also unveiled a new logo.
IX ACTIVITIES UNDERTAKEN IN 2014 Brand Advertising Tourism Fiji undertakes brand advertising within all our international markets to ensure that Fiji remains top- of-mind as a holiday destination and is perceived as a highly desirable and aspirational destination.
In 2014 Tourism Fiji undertook significant brand advertising, some highlights of which included: • Brand Advertising on TV, press and online in the Australian and New Zealand markets in January 2014 • Brand Advertising through magazine and online in the USA marketing in January 2014 Social Media and Digital Marketing Tourism Fiji markets itself heavily across digital channels such as its website and social media platforms.
These are critical platforms not only for promoting the destination, but also for sharing valuable content with potential visitors to influence their decision to visit Fiji.
In 2014 Tourism Fiji continued to improve their website and also launched a number of social media campaigns, some highlights of which included: • The “Pin your Wedding” campaign through Pinterest and Facebook Trade Engagement Tourism Fiji works closely with our trade partners to ensure they have the understanding, resources and distribution in place to effectively market and promote Fiji to potential visitors through their own activities.
Through workshops, forums, meetings and presentations Tourism Fiji ensures that our trade partners are well- informed and equipped to promote Fiji to their clients.

In 2014 Tourism Fiji ran a number of workshops and training, some highlights of which included: • Honeymoon incentive program with Hanatour in South Korea Trade Partnerships Through trade partnerships Tourism Fiji amplifies its activities via co-operative campaigns and joint ventures.
These are undertaken in conjunction with airlines, retailers, wholesale partners and contributing industry.

In 2014 Tourism Fiji ran a number of trade co-operative campaigns, some highlights of which included: Tourism Fiji & Flight Centre joint campaign in February.

• • HOOT tactical campaign to launch the new HOOT brand.

Trade Famils Fiji provides a remarkable visitor experience that has to be seen to be believed.
By providing our trade partners with an opportunity to experience the destination they are then able to use this knowledge and understanding of the destination to better sell holidays to Fiji.
X In 2014, Tourism Fiji hosted a number of Trade Famils, some highlights of which were: • PGA famil in February 2014 • Luxury/Honeymoon famil from South Korea in March 2014 Consumer Shows Tourism Fiji attends travel and consumer shows to interact directly with consumers and travel partners to showcase the products and experiences available within the destination.
In 2014, Tourism Fiji attended several travel shows, some highlights of which were: ITB: The World’s biggest trade/consumer travel fair • • Attendance at Flight Centre Expo in New Zealand XI CORPORATE GOVERNANCE Board of Directors and Executive Management - 2014 2014 Tourism Fiji Board of Directors Chairman Stephan Pichler Acting Deputy Chair Elizabeth Powell (Term expired on 28 July 2014) Director Deputy Chair Director Director Director Director Faiyaz Koya (Term expired on 8 August 2014) Geoff Shaw Shaheen Ali Shane Cunning Lawrence Tikaram Josephine Smith-Moffat 2014 Tourism Fiji Executive Management Acting Chief Executive Officer Kenneth Freer Acting Director Global Marketing Michelle Sinnott Events Director Global PR Manager Chief Financial Controller Operations Manager Sally Cooper Patricia Mallam Vimlesh Magan Thomas Valentine Regional Director Australia Carlah Walton Regional Director New Zealand Wayne Deed Regional Director North America Regional Director Korea Ruth Daly Daisy Park Regional Representative - UK/Ireland Jane West (Ceased as Rep Office) Regional Director UK & Europe Jane West (Change of role on 13 October 2014) Regional Representative – India Pranav Kapadia XII FINANCIAL REPORTS XIII 15 OFFICE OF THE AUDITOR GENERAL 6-8th Floor, Ratu Sukuna House 2-10 McArthur St P.O.
Box 2214, Government Buildings Suva, Fiji Telephone: (679) 330 9032 Fax: (679) 330 3812 E-mail: info@auditorgeneral.gov.fj Website: www.oag.gov.fj File:1254 23 April 2019 Mr. Andre Viljeon Board Chairman Tourism Fiji PO Box 9217 NADI Dear Mr. Vilgeon AUDITED FINANCIAL STATEMENTS TOURISM FIJI FOR THE FINANCIAL YEAR ENDED 31st DECEMBER 2014 Audited financial statements for the Tourism Fiji for the year ended 31 December 2014 together with my audit report on them are enclosed.
Particulars of the errors and omissions arising from the audit have been forwarded to the Management for necessary actions.

Yours sincerely Ajay Nand AUDITOR GENERAL cc: Mr. Matthew Stoeckel - Chief Executive Officer Encl.
TOURISM FIJI FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014 TOURISM FIJI FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014 Content Page Directors’ report Independent auditor’s report Statement of comprehensive income Statement of changes in accumulated funds Statement of financial position Statement of cash flows Notes to the financial statements 19 20-21 22 23 24 25 26-36 TOURISM FIJI DIRECTORS’ REPORT 31 DECEMBER 2014 The Board of Directors present their report together with the financial statements of Tourism Fiji (“the entity”) for the year ended 31 December 2014 and the auditors’ report thereon.
Directors The following were directors of the entity during the year and up to the date of this report: Mr. Stefan Pichler Mr. Shane Cunning Mr. Lawrence Tikaram Ms. Elizabeth Powell Ms. Josephine Smith Ms. Jay Shree Raniga Mr. Faiyaz Koya Chairman Director Director Acting Chairperson Director Secretary Director Ms. Lisa Bolalevu / Ioane Naivalurua Acting Secretary State of Affairs In the opinion of the Directors, the accompanying statement of the financial position gives a true and fair view of the state of affairs of the entity as at 31 December 2014 and the accompanying statement of comprehensive income, statement of changes in accumulated funds and the statement of cash flow gives a true and fair view of the results and cash flows of the entity for the year then ended.
Principal Activities The principal activities of the entity during the financial year was developing marketing and sales objectives to stimulate increased visits to Fiji by people of other countries, coordinate overseas promotional activities and to ensure Fiji’s marketing operations are innovative, effective and efficient to maximize available growth.

There has been no change in the nature of these activities during the year.
Events subsequent to balance date There has not arisen in the interval between the end of the year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect significantly the operations of the entity, the results of those operations or the state of affairs of the entity in the subsequent financial years.
Signed in accordance with a resolution of the directors Dated at Nadi this............................day of...........................2019 ......................................................... Board of Director ...................................................... Chief Financial Controller 19 OFFICE OF THE AUDITOR GENERAL Excellence in Public Sector Auditing 6-8th Floor, Ratu Sukuna House 2-10 McArthur St P.O.
Box 2214, Government Buildings Suva, Fiji Independent Auditor’s Report Report on the Audit of the Financial Statements Opinion Telephone: (679) 330 9032 Fax: (679) 330 3812 E-mail: info@auditorgeneral.gov.fj Website: www.oag.gov.fj I have audited the financial statements of Tourism Fiji which comprise the statement of financial position as at 31 December 2014, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory information as set out on notes 1 to 24.
In my opinion, the accompanying financial statements give a true and fair view of the financial position of the Tourism Fiji as at 31 December 2014, and of its financial performance, its cash flows and changes in equity for the year then ended in accordance with International Financial Reporting Standards (“IFRS”).

Basis of Opinion I conducted my audit in accordance with International Standards on Auditing (“ISAs”).
My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report.
I am independent of the Tourism Fiji in accordance with the International Ethics Standards Board for Accountant’s Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to my audit of the financial statements in Fiji and I have fulfilled other ethical responsibilities in accordance with these requirements and the IESBA Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Responsibilities of the Management and Directors for the Financial Statements The directors and management are responsible for the preparation and fair presentation of these financial statements in accordance with IFRS, and for such internal control as the directors and management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, directors and management are responsible for assessing Tourism Fiji’ s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management intend to cease operations, or have no realistic alternative but to do so.

The directors and management are responsible for overseeing the Tourism Fiji’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with ISA, I exercise professional judgment and maintain professional skepticism throughout the audit.
I also: • • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omission s, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Tourism Fiji’s internal control.
20 • • • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of the management ‘s and directors’ use of going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Tourism Fiji’ s ability to continue as a going concern.
If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures, are inadequate, to modify my opinion.

My conclusions are based on the audit evidence obtained up to the date of my auditor’s report.

However, future events or conditions may cause the Tourism Fiji to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the management and directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
Report on Other Legal and Regulatory Requirements In accordance with the requirements of the Fiji Visitors Bureau Act, 1985 and other statutory requirements, in my opinion: a) proper books of account have been kept by Tourism Fiji, so far as it appears from my examination of those books, b) the accompanying financial statements: (i) are in agreement with the books of account; and (ii) to the best of my information and according to the explanations given to me, give the information reauired.
by the Fiji Visitor’s Bureau Act, 1985 in the manner so required.
Ajay Nand AUDITOR GENERAL Suva 23 April, 2019 21 TOURISM FIJI STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2014 Government grant Co-operative promotion and advertising Other operating income Employee salaries and benefits Operating and administrative expenses Selling and marketing expenses Depreciation expense Surplus from operations Finance income Surplus for the year Other comprehensive income Realised exchange (loss)/gain Unrealised exchange loss Notes 5 6 7(ii) 7(i) 7(iii) 2013 $ 2012 $ 23,043,481 23,043,478 1,760,707 1,731,122 65,818 56,739 24,870,006 24,831,339 (2,987,594) (2,205,811) (1,647,067) (1,461,573) (25,648,334) (18,260,814) (148,734) (114,936) (5,561,722) 2,788,205 8 15,693 16,532 (5,546,029) 2,804,737 52,699 (90,693) (89,730) (67,554) Total comprehensive income for the year (5,583,06I) 2,646,490 The accompanying notes form an integral part of the statement of comprehensive income.
22 TOURISM FIJI STATEMENT OF CHANGES IN ACCUMULATED FUNDS FOR THE YEAR ENDED 31 DECEMBER 2014 Accumulated Funds Balance at I January Profit for the year Balance at 31 December Notes 2013 $ 2012 $ 9,600,608 6,954,116 (5,583,061) 2,646,490 4,017,547 9,600,606 The accompanying notes form an integral part of the statement of changes in accumulated funds.
23 TOURISM FIJI STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014 Non-Current Assets Property, plant and equipment Term Deposit Refundable deposits Total non-current assets Current Assets Cash at bank and on hand Prepaid expenses Taxes refundable Inventories Other receivables and advances Total current assets Total Assets Accumulated funds Total Accumulated Funds Current Liabilities Employee entitlements Expenses accrued Income in advance VAT Payable Other payables and accruals Total current liabilities Total Liabilities Notes 2013 $ 2012 $ ,183 3,944,568 2,817,242 39,927 95,426 1,289,238 449,842 733,888 5,961,385 3,893,739 5,961,385 3,893,739 Total Accumulated Funds and Liabilities 9,978,932 13,494,345 The accompanying notes form an integral part of the statement of financial position.
For and on behalf of the Board and in accordance with the resolution of the directors.
......................................................... Board of Director ...................................................... Chief Financial Controller 24 TOURISM FIJI CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2014 Cash flows from operating activities Cash receipts from Government and related stakeholders Cash payment to employees & other parties Cash generated from operations Notes 2013 $ 2012 $ 24,627,606 24,957,433 (29,074 ,190) (20,420,497) (4,446,582) 4,536,936 Interest received 15,693 16,532 Cash flows from operating activities (4,430,890) 4,553,468 Cash flows from operating activities Acquisition of property, plant and equipment Proceeds from sale of property, plant and equipment Cash flows from operating activities (171,029) (279,001) 28,500 (171,029) (250,501) Effect of exchange rate changes on cash and cash equivalents (37,032) (158,961) Net increase in cash Cash and cash equivalents at 1 January (4,638,948) 4,144,006 12,498,812 8,354,806 Cash and cash equivalents at 31 December 10 7,859,864 12,498,812 The accompanying notes form an integral part of the consolidated statement of cash flows.
25 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2014 1.

Reporting entity Tourism Fiji (the ‘entity’) is a statutory body fully funded by the Fiji government and is the marketing arm of the Ministry of Tourism.

The entity has regional offices abroad including Australia, New Zealand, United States of America and Korea.

The address of the entity’s principal place of business is Suite I07 Colonial Plaza, Namaka, Nadi.
The principal activities of the entity include marketing objectives to stimulate increased visits to Fiji by people of other countries, coordinate overseas promotional activities and to ensure Fiji’s marketing operations are innovative, effective, and efficient to maximise available growth 2.
Basis of preparation (a) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) adopted by The financial statements were approved by the Board of Directors on 05/10/17 (b) Functional and presentation currency The financial statements are presented in Fiji dollars, which is the entity’s functional currency.
(c) Use of estimates and judgments The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses.

Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an on-going basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following notes: Note 3 (b) Note 3 (c) Note 3 (d) Note 3 (e) Note 3 (f) - - - - - Property, plant & equipment Financial instruments Impairment Employee benefits Other payables and provisions 3.
Significant accounting policies The principal accounting policies adopted by the entity are stated to assist in a general understanding of the financial statements.

(a) Foreign currency Foreign currency transactions At the end of the financial period, transactions in foreign currencies are translated to Fiji dollars using the average exchange rates for the year.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to Fiji dollars at the exchange rate at that date.

The foreign currency gain or loss on translation are recognised in the statement of financial performance.

(b) Property, plant and equipment Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment.

These are included in the statement of financial performance.
26 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 Subsequent expenditure The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefit embodied within the part will flow to the entity and its cost can be measured reliably.
The cost of the day-to-day servicing of property, plant and equipment are recognised in the statement of financial performance as incurred.

Depreciation Depreciation is recognised in the statement of financial performance on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment.
The Depreciation rates for the current and comparative periods are as follows: Motor vehicles Office equipment Furniture and fittings 25% 5-50% 5-25% Depreciation methods, useful lives and residual values are reassessed at each reporting date.

(c) Financial instruments (i) Non derivative financial instruments The entity initially recognises loans and receivables and deposits on the date that they originate.
The entity derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.

Any interest in transferred financial assets that is created or retained by the entity is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the entity has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The entity has the following non-derivative financial assets: held-to-maturity financial assets, loans and receivables and cash and cash equivalents.
Held-to-maturity financial assets If the entity has the positive intent and ability to hold debt securities to maturity, then such financial assets are classified as held-to-maturity.

Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition held-to-maturity financial assets are measured at amortised cost less any impairment losses.
Any sale or reclassification of a more than insignificant amount of held-to-maturity investments not close to their maturity would result in the reclassification of all held-to maturity investments as available-for-sale, and prevent the entity from classifying investment securities as held-to-maturity for the current and the following two financial periods.

Loans and receivables Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market.
Such assets arc recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition loans and receivables are measured at amortised cost less any impairment losses.

Loans and receivables comprise trade and other receivables (refer below).

Trade and other receivables Trade receivables and other assets are measured at initial recognition at fair value.
Subsequently, appropriate allowances for estimated irrecoverable amounts are recognised in the statement of financial performance when there is objective evidence that the asset is impaired.

27 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand for the purpose of the statement of cash flows.
Financial liabilities Financial liabilities are classified according to the substance of the contractual arrangements entered into.

The entity’s financial liabilities include trade and other payables.
All financial liabilities, except for derivatives, are recognised initially at their fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial liability and subsequently measured at amortised cost, using effective interest method, unless the effect of discounting would be insignificant, in which case they are stated at cost.
(d) Impairment (i) Financial assets A financial asset not carried at fair value through statement of financial performance is assessed at each reporting date to determine whether there is objective evidence that it is impaired.

A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring of an amount due to the entity on terms that the entity would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, the disappearance of an active market for a security.

The entity considers evidence of impairment for receivables and held-to-maturity investment securities at both a specific asset and collective level.
All individually significant receivables and held-to-maturity investment securities are assessed for specific impairment.

All individually significant receivables and held-to-maturity investment securities found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified.
Receivables and held-to-maturity investment securities that are not individually significant are collectively assessed for impairment by grouping together receivables and held to-maturity investment securities with similar risk characteristics.
In assessing collective impairment the entity uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows.

Losses are recognised in statement of financial performance and reflected in an allowance account against receivables.

When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through statement of financial performance.
(ii) Non-financial assets The carrying amounts of the entity’s non-financial assets, inventories and property plant and equipment, are reviewed at each reporting date to determine whether there is any indication of impairment.

If any such indication exists, then the asset’s recoverable amount is est imated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-ge nerating unit”).

The entity’s corporate assets do not generate separate cash inflows.

If there is an indication that a corporate asset may be impaired, then the recoverable amount is determined for the CGU to which the corporate asset belongs.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount.

Impairment losses are recognised in the statement of financial performance.

Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.
28 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(e) Employee benefits Superannuation Contributions are paid to a superannuation fund on behalf of employees to secure retirement benefits.

Costs are included in the statement of financial performance.

Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed in the statement of financial performance as the related service is provided.
An accrual is recognised for the amount to be paid under short-term benefits if the entity has a present or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be measured reliably.

(f) Other payables and provisions Other payables are non-interest-bearing and are stated at cost.
A provision is recognised in the statement of financial position when the entity has legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation.

If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate the risks specific to the liability.
(g) Revenue (i) Co-operative promotion and advertising Revenue from co-operative promotion and advertising is recognised in the statement of financial performance on an accrual basis.

(ii) Grant income An unconditional government grant is recognised in statement of financial performance as grant income when the grant is received.

(h) Finance income and expenses Financing income and expenses comprises of interest income on term deposit, bank charges and foreign currency gains or losses.
(i) Contingent liabilities and contingent assets A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

It can also be a present obligation arising from past events that is not recognised because it is not probable that outflow of economic resources will be required or the amount of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the notes to the accounts.

When a change in the probability of an outflow occurs so that the outflow is probable, it will then be recognised as a provision.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non occurrence of one or more uncertain events not wholly within the control of the entity.
Contingent assets are not recognised but are disclosed in the notes to the accounts when an inflow of economic benefits is probable.

When inflow is virtually certain, an asset is recognised.

(j) Comparative information Comparative information has been restated where necessary to align with current year presentation.

Events after balance day effects have been shown against the retained earnings.
The relevant adjustments are shown in the Statement of Accumulated Funds as well as in the individual branches accounts.

(k) Inventories Inventories comprise of promotional items and are stated at cost.

Costs include invoice price plus associated costs.

Costs are assigned to individual items of inventory mainly on weighted average basis.

29 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 4.
Financial risk management Overview The entity’s operations expose it to financial risks that include liquidity risk, interest rate risk, market risk and credit risk.

The entity has exposure to the following risks from its use of financial instruments: l. Credit risk 2.

Liquidity risk 3.

Market risk This note presents information about the entity’s exposure to each of the above risks, the entity’s objectives, policies and processes for measuring and managing risk, and the entity’s management of capital.
Further quantitative disclosures are included throughout these financial statements.

Risk management framework The Board of Directors has overall responsibility for the establishment and oversight of the entity’ s risk management framework.

The entity’s risk management policies are established to identify and analyse the risks faced by the entity, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the entity’s activities.

The entity, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
Credit risk Credit risk is the risk of financial loss to the entity if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the entity’s receivables from customers and investment securities.

Other receivables The entity’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the entity’s customer base, including the default risk of the industry and country in which customers operate has less of an influence on credit risk.

Customers that fail to meet the entity’s benchmark creditworthiness may transact with the entity only on a prepayment basis.

The entity does not require collateral in respect of other receivables.
The entity establishes an allowance for impaim1ent that represents its estimate of losses in respect of other receivables, deposits and investments.

The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified.
The collective loss allowance is determined based on historical data of payment statistics for similar financial assets.

Credit risk concentrations are presented below: Other receivables and advances Investments - Term deposits 2014 $ 2013 $ 389,886 211,603 20,000 20,000 Liquidity risk Liquidity risk is the risk that the entity will not be able to meet its financial obligations as they fall due.
The entity’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both nom1al and stressed conditions, without incurring unacceptable losses or risking damage to the entity’s reputation.

The entity ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations.
30 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 Financial assets Cash at bank and on hand Other receivables and deposits Refundable deposits Investments - term deposits Financial liabilities Other payables and accruals Expenses accrued Employee entitlements 2014 $ 2014 $ 2013 $ 2013 $ Less than 1 Year Less than 1 Year Less than 1 Year Less than 1 Year 7,859,864 389,886 12,498,812 211,603 26,091 20,000 8,249,750 46,091 12,710,415 17,473 20,000 37,473 449,842 3,944,568 237,810 4,632,220 733,888 2,817,242 247,183 3,798,313 Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the entity’s income or the value of its holdings of financial instruments.
The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

5.

Other operating (expense) income Other income Commission 6.
Personnel expenses Salaries and wages - Non-Key Management Personnel Key management compensation - short term benefits Superannuation contributions Training and Productivity Authority of Fiji 2014 $ 2013 $ 31 ,754 175,898 34,064 65,818 17,620 56,739 2014 $ 2013 $ 1,429,869 1,002,077 1,312,406 1,121,615 154,775 11,109 75,146 6,973 2,908,159 2,205,811 The average number of employees during the year was: 31 29 31 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 7.
(i) Selling and marketing expenses Advertising & branding Information distribution Promotional materials Promotions Public relations Research and other marketing expenses Co-operative promotion & advertising Market representation Global retainers (ii) Operating and administrative expenses Assets disposals Exchange loss Audit fees Bad Debts Bank charges Board members remuneration and other related costs Cleaning materials Electricity Office expenses General insurance Medical insurance Travel insurance Maintenance grounds and buildings Maintenance/Leasing of office equipment Motor vehicle running expenses Freight and postage Printing and stationery Rent Staff relocation Staff training Subscription and advertising Telephone, facsimile and emails Travelling - local Travelling - overseas Uniforms Legal expenses Professional Fees SLA IT Agreement costs Contingency Disaster Recovery Costs Industry Liaison Fringe Benefit Tax 32 2013 $ 2013 $ ,813 6,284 9,645 8,931 44,190 11,106 38,538 57,417 38,348 24 ,640 69 6,080 159,123 105,418 75,871 53,614 27,004 36,258 12,205 27,178 342,501 370,777 6,832 17,494 14,662 110,673 38,175 219,113 4,000 11,769 177,520 72 ,851 7,593 8,800 2,604 20 ,378 1,647,062 41,606 17,274 40,944 72,152 23,070 192,423 25,023 164,701 20,434 35,515 8,400 2,625 11,509 461,573 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 (iii) Depreciation Expense Depreciation expense 8.
(i) Selling and marketing expenses Finance Income Interest Income 9.
Property, plant and equipment 148,734 114,936 15,693 16,532 2014 Motor Vehicles Office Equipment Furniture & Fitting IT Hardware Renovation Total Cost Balance at 1 January 2014 350,798 113,190 123,400 288,398 267,090 1,142,876 Effects of change in exchange rates Additions Disposals Balance at 31 December 2014 Depreciation Balance at 1 January 2014 Effects of change in exchange rates Disposals Balance at 31 December 2014 Carrying amount Balance at 1 January 2014 Balance at 31 December 2014 1,921 101,897 (64,634) 389,982 172,044 2,153 47,692 (64,634) 157,255 (2,990) 12,375 303 454 (3,491) 56,460 (122) (3,802) 170,732 (64,756) 122,575 123,703 345,191 263,599 1,245,050 70,059 (3,018) 11,688 103,892 177,330 166,403 689,728 251 5,726 89 47,847 (24) (3,435) 35,578 (3,960) 148,531 (64,659) 78,729 109,869 225,242 198,546 769,640 178,754 232,727 43,131 43,846 19,508 13,834 111,068 119,949 100,687 65,053 453,148 475,410 2013 Motor Vehicles Office Equipment Furniture & Fitting IT Hardware Renovation Total Cost Balance at 1 January 2013 243,089 127,327 128,966 302,377 275,707 1,077,466 Effects of change in exchange rates Additions Disposals (939) 182,319 (377) 28,207 (1,294) 7,834 60,641 (73,671) (41,967) (12,106) (75,431) 811 (8,617) (10,416) 279,001 (203, 175) Balance at 31 December 2013 350,798 113,190 123,400 288,398 267,090 1,142,876 Depreciation Balance at 1 January 2013 232,966 99,157 107,220 203,559 136,947 779,849 Effects of change in exchange rates Depreciation Disposals (1,220) 13,969 (378) 11,723 (993) 9,106 684 44,212 (6,470) 35,926 (73,671) (40,442) (11,441) (71,125) (8,377) 114,936 (196,679) Balance at 31 December 2013 172,044 70,060 103,892 177,330 166,403 689,729 Carrying amount Balance at 1 January 2013 10,123 28,170 21,746 98,818 138,760 297,617 Balance at 31 December 2013 178,754 43,130 19,508 111,068 100,687 453,147 33 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 10.
Cash and cash equivalents Cash on hand Cash at bank Cash and cash equivalents in the statement of cash flows 11.

Term Deposit Term deposit $ 2014 $ 2013 693 1,000 7,859,171 12,497,812 7,859,864 12,498,812 20,000 20,000 The term deposit represents a bank guarantee given by Westpac Banking Corporation as securities over the entity’s transactions under the Customs Act.

The guarantee is covered by a lien over the term deposit of $20,000 held with the Bank.

The term deposit matures on 14 November 2014.

12.


Prepaid expenses Head office Sydney office Auckland office Los Angeles office 13.

Refundable Deposits Electricity deposit (HQ) Equipment rental bond (HQ) Car park bond (Sydney) Office rental bond Office rental bond (LAX) Office Rental Bond (Shanghai) 14.

Taxes Receivables VAT receivable - Head Office OST receivable - Sydney Office OST receivable - Auckland Office I5.
Other Receivables & Advances Head Office Participation fees owed Fiji excellence awards Refundable taxes Other general advances Interoffice clearing accounts Rent receivable Participation fees owed Other receivables Participation fees owed Advances Participation fees owed Advances Sydney Office Auckland Office LAX Office Korea Office Advances (1,201) 300 7,843 (1) (2) 128,875 10,517 2,095 60 389,889 211,603 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 $ 2014 $ 16.
Employee entitlements This consists of salaries, leave and superannuation dues.

The breakdown is as follows: Salaries and annual leave dues Superannuation 17.

Expenses due Operating expenses Head office Sydney office Auckland office Los Angeles office Total Marketing expenses Head office Sydney office Auckland office Los Angeles office Tokyo office Korea Total TOTAL EXPENSES DUE 18.

Income received in advance Fiji office Sydney office NZ office USA office 19.
Other payables & accruals Fiji Revenue Customs Authority TAG - Funds plus interest VAT Payable Others 20.
Related parties (a) Directors Mr. Stefan Pichler Mr. Shane Cunning Mr. Lawrence Tikaram Ms. Elizabeth Powell Ms. Josephine Smith Ms. Jay Shree Raniga Mr. Faiyaz Koya Chairman Director Director Acting Chairperson Director Secretary Director Ms. Lisa Bolalevu / Ioane Naivalurua Acting Secretary Directors fees are disclosed under Note 7 and key management compensation is disclosed under Note 6 35 TOURISM FIJI NOTES TO THE FINANCIAL STATEMENTS (CON’T) FOR THE YEAR ENDED 31 DECEMBER 2014 20.
Related parties (continued) (b) Transactions with key management personnel Key management personnel compromise the Chief Executive Officer, Director of Marketing, Director of Finance and Regional Directors in Australia, New Zealand, USA and Japan.

Key management compensation is disclosed under Note 6.

21.

Inventories Survival Kit USB Tags Pens Bags T-shirts Others The valuation policy in respect of the above is set out in Note 3 (k).

22.
22.

Contingencies There were no contingent asset or liabilities as at year end (2014: $Nil) 23.

Commitments Operating lease commitments for non-cancellable rental agreement and other operating lease.

Less than one year Between one and two years Between two and five years Total operating lease commitments 24.
Events subsequent to balance date $ 2014 13772.56 3498.45 2992.5 652.42 4,124 $ 2013 6,043 25,040 6,043 132,342 238,632 65803 436,776 356,462 170,578 206,641 733,681 There are no events that requiring adjustment to or disclosure in the financial statements that occurred after the balance sheet date.

36 38