preface

BDO Israel
DOING BUSINESS IN ISRAEL
♦ Interpretation No. 3 concerning the accounting treatment of impairment of
investment in a non-subsidiary foreign entity.
♦ Interpretation No. 4 concerning the translation of financial statements into
Shekels from the non-Shekel reporting currency.
♦ Interpretation No. 5 concerning an investor’s accounting for an investee
when the investor has a majority of the voting interest but the minority
shareholder or shareholders have certain approval or veto rights.
♦ Interpretation No. 6 concerning the accounting treatment of impairment of
assets of a non-subsidiary investee company.
♦ Interpretation No. 7 concerning the accounting treatment of tax benefits for
non-deductible equity instruments granted to employees.
♦ Interpretation No. 8 concerning reporting of gross income as a principal
versus net income as an agent.
♦ Interpretation No. 9 concerning income from software transactions.
♦ Interpretation No. 10 concerning accounting treatment of impairment of an
investment in associate.
New amendments to accounting standards and interpretations under
Israeli GAAP
Improvements to current standards (Israeli GAAP): In February 2010, in
consequence of the 2008 Improvements to International Financial Reporting
Standards (2) , the Board published several amendments to Israeli accounting
standards, based on amended parallel International Accounting Standard,
inter alia:
♦ Property under construction or development for future use as
investment property: The amendment designated property under
construction or development for future use as an investment property within
the scope of Accounting Standard No. 16 - Investment Property. Such
property previously fell within the scope of Accounting Standard No. 27,
Property, Plant and Equipment. Additional guidance added for
circumstances where the fair value of property under construction could not
be reliably measured. Transitional provisions require the application of the
amendments prospectively (for periods commencing January 1 st 2010),
(2) This is the first Standard published under the IASB’s annual improvements process
which includes 35 amendments to the IFRS's. Annual improvements process is intended to
deal with non-urgent, minor amendments to Standards.
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