Avner Oil - Annual Report 2011 - Delek Energy Systems

4) Accepting a financial liability – the liability that is the object of the transaction divided by thetotal liabilities as in the last audited or reviewed financial statements, as the case may be.5) Insurance transactions – the premium shall be reviewed as the amount of the transaction, asopposed to the scope of the insurance cover given.C. At the discretion of the General Partner, where none of these criteria are relevant to thetransaction under discussion, the General Partner shall determine another criterion, provided thatthe scope of the transaction does not exceed the rules set above.D. The transaction is also negligible from the aspect of its quality.E. When reviewing the negligibility of a transaction due to be made in the future, the extent to whichit is likely to be realized should also be examined.F. For the purpose of an immediate report, the negligibility of each transaction shall be reviewedseparately.G. For the periodic report, the negligibility of a transaction shall be reviewed annually, including allthe transactions of the same kind made with the interested party or controlling shareholder, as thecase may be, in the reporting year.H. In long-term (multi-year) transactions (such as renting property for several years), negligibility ofthe transaction shall be examined on an annual basis (thus, in the above example, the annualrent will be reviewed).I. Each transaction shall be reviewed on its merits, but the negligibility of combined orinterdependent transactions shall be reviewed in aggregate. Transactions made with greatfrequency during the year and close in time to one another, shall be seen as combinedtransactions.J. Where questions arise as to the application of the above criteria, the General Partner shallexercise discretion and review the negligibility of the transaction on the basis of the purpose ofthe Reporting Regulations and the aforementioned rules and guidelines.Part IV - Disclosure in connection with the Corporation's financial reporting1. Events after the balance sheet dateA. For details of developments after the balance sheet date in connection with oil and gas assets,see Note 7 to the financial statements at December 31, 2011.B. For details of the Partnership's commitment for receipt of a loan from the controlling shareholderin the General Partner, see Note 12S to the financial statements at December 31, 2011.C. For details of commitments in natural gas sale agreements, see Note 12M2 to the financialstatements at December 31, 2011D. For details of the resolution of the general meeting to approve an issue of participation units, seeNote 13A to the financial statements at December 31, 2011.2. Critical accounting estimatesPreparation of the financial statements in accordance with accepted accounting standards obligatesmanagement to conduct estimates and assessments that affect the reported value of the assets,liabilities, revenues and expenses and to make disclosures in connection with contingent assets andliabilities. Management bases the estimates and assessment on past experience and on other factorsthat in it considers relevant in the circumstances. Actual results may differ from these assessmentsunder different conditions or assumptions. We have identified the most critical estimates andassumptions that require significant discretion in preparation of the financial statements. We estimatethat these assessments and estimates are critical as any change in these estimates and assessmentshas the potential to significantly affect the financial statements.On the key assumptions made in the financial statements in connection with the uncertainty at thebalance sheet date and critical estimates that were calculated by the Partnership, see Note 2B to thefinancial statements at December 31, 2011.B-18