The main effect of the measure will be in the reporting of the fair value of fixed assets and the non-recognition of stock transactions by subsidiaries.
The Israel Accounting Standards Board (IASB) decided last Tuesday that Israel would adopt international accountancy standards for financial reports, starting with the first quarter of 2008. IASB chairman Dov Sapir said the decision would have far-reaching consequences on the financial results of public companies.
The IASB will strive to complete within the next two years the translation of international standards, and adapt them to Israel's business reality. The IASB will stress uniform, clear and binding translations. The English version of international standards not translated in time will be binding in Israel. The IASB has published ten translated international standards to date. Two additional standards have been translated, but not yet published, due to disagreements within the IASB. Nine additional standards are now being translated, the translation of five more will begin this year, and the remaining eight will be carried out over the next two years.
The main effect of the measure will be in the reporting of the fair value of fixed assets and the non-recognition of stock transactions by subsidiaries.
The International Accounting Standards Board (IASB) is a voluntary organization comprising national accounting standard boards.
Published by Globes [online], Israel business news - www.globes.co.il - on June 2, 2005