| NOTE 3:- |
DISCLOSURE OF NEW STANDARDS IN THE PERIOD |
IFRS
16, "Leases":
In January 2016, the IASB issued
IFRS 16, "Leases" ("new Standard"), which supersedes IAS 17, "Leases", IFRIC 4, "Determining
Whether an Arrangement Contains a Lease", and SIC-15, "Operating Leases - Incentives". According to the Standard,
a lease is a contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration.
The
effects of the adoption of the new standard are as follows:
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According
to the new standard, lessees are required to recognize all leases in the statement of financial position (excluding certain
exceptions, see below). Lessees will recognize a liability for lease payments with a corresponding right-of-use asset, similar
to the accounting treatment for finance leases under the existing standard, IAS 17, "Leases". Lessees will also
recognize interest expense and depreciation expense separately. |
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Variable
lease payments that are not dependent on changes in the Consumer Price Index ("CPI") or interest rates, but are
based on performance or use are recognized as an expense by the lessees as incurred and recognized as income by the lessors
as earned. |
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In
the event of change in variable lease payments that are CPI-linked, lessees are required to remeasure the lease liability
and record the effect of the remeasurement as an adjustment to the carrying amount of the right-of-use asset. |
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The
accounting treatment by lessors remains substantially unchanged from the existing standard, namely classification of a lease
as a finance lease or an operating lease. |
The
new standard is effective for annual periods beginning on or after January 1, 2019.
The
impact of the adoption of the new standard, does not have a material effect on the financial statements.
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