IFRS Approach
Preparations for the Adoption of IFRS in Israel
In November 2005 the Professional Practice Committee of the Israel
Accounting Standards Board decided that as from January 1, 2008 the
financial statements of public companies in Israel would be prepared
according to IFRS. This dramatic decision is expected to complete the
process of converting to IFRS that began in Israel in recent years. The
transition process was reflected in the issuance of a number of
accounting standards, proposals for accounting standards and a terms
framework for the preparation and presentation of financial statements
according to IFRS. Furthermore, the Israel Accounting Standards Board
established a number of committees for examining the adoption of
additional IFRS, with respect to matters such as: revenue recognition,
business combinations, earnings per share, fixed assets, financial
instruments, etc.
The broshure written by the Professional Practice Department of KPMG
Somekh Chaikin reviews the principal changes that are anticipated to
occur following the adoption of IFRS in Israel.
Barnea
Committee Follow-up
During September 2004 amendments to the Securities Regulations were
published which drastically changed public corporation reporting
requirements in Israel, based on the recommendations of the Barnea
Committee. Similarly, amendment 25 to the Securities Law was enacted
in November 2004 dealing with off-the-shelf registration statements
following the recommendations of the Bachar committee.
This booklet includes analysis of the principal changes effective as
a result of the changes in regulation, with stress on implementation
issues.
No.16 - Taxes on Income
During August 2004 the Israel Accounting Standards Board published Accounting
Standard No.19 - Taxes on Income. The standard applies to financial statements
covering periods commencing on January 1, 2005 or subsequently. The standard is
based on the International Accounting Standard No.12 - Taxes on Income, and
determines the accounting treatment required for taxes on income, including
recognition, measurement, presentation and disclosure criteria. This book
includes the standards instructions, clarifications and examples designed to
assist in the understanding of the standard and its initial implementation in
Israel.