05.07.2009

Companies that are subject to the provision of the Securities Law 1968 and which are required to report according to the regulations published thereunder will be required to prepare their financial statements in accordance with IFRS as of 1.1.2008.

IFRS currently has three main categories for handling investments in shares: no influence (financial asset), in which case the accounting is based on fair value; significant influence (associates) or joint control – in which case the accounting is based on the equity method; and control (subsidiary) – in which case the financial statements need to be consolidated.