preface

62
ACCOUNTING AND AUDITING PERSPECTIVES
♦ Disclosure requirements on balances and transactions with related parties.
♦ Special accounting treatment of transactions between a public company and
its controlling stockholders.
♦ Presentation of marketable securities in the financial statements.
♦ Tax implications regarding the financial statements.
♦ Presentation statement of cash flows.
♦ Calculation of earning per share - Basic EPS and Diluted EPS.
♦ Accounting treatment of government grants in the financial statements.
♦ Format of financial statement presentation for industrial, commercial,
publicly traded and other companies.
♦ Accounting treatment of share-based payments.
♦ Accounting treatment of income.
♦ Financial Instruments: Disclosure and presentation in the financial
statements.
♦ Accounting treatment of inventory.
♦ Accounting treatment of property, plant and equipment.
♦ Accounting treatment of investment property.
♦ Accounting treatment of intangible assets.
It should be emphasized that in cases where no Israeli publications exist, the
common practice in Israel is applied for determining the required policy on a
certain issue. If no such common practice exists, International Accounting
Standards (IAS) and International Financial Reporting Standards (IFRS) are
applied.
Furthermore, if no common practice or IAS opinion exists, it is customary to
study other international opinions - e.g. those of the United States FASB.
The application of specific provisions in certain sectors (such as banks,
insurance companies, municipalities, etc.) and in companies listed on the Tel
Aviv Stock Exchange (such as the Israeli Securities Regulations) is paramount.
These provisions determine, inter alia, accounting policy, presentation and
disclosure in the financial statements.
BDO Israel