Israel

Extent of IFRS application | Status | Additional Information |
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IFRS Standards are required for domestic public companies |
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All domestic companies whose securities trade in a public market only in Israel are required to use IFRS Standards except for banking institutions (listed and unlisted, including credit card companies). Banking institutions follow regulatory accounting standards. Domestic companies whose securities trade both in Israel and on specified foreign stock exchanges are allowed to file in Israel financial statements according to IFRS Standards, IFRS Standards as adopted by the European Union, or US GAAP. |
IFRS Standards are permitted but not required for domestic public companies | ||
IFRS Standards are required or permitted for listings by foreign companies |
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With limited exceptions, foreign companies are required to use IFRS Standards in their consolidated financial statements. The exceptions are for (a) foreign companies whose securities are traded both in Israel and in specified other stock exchanges and (b) foreign companies that are controlled outside of Israel or whose revenues are primarily from outside Israel. The exception companies may use IFRS Standards, IFRS Standards as adopted by the European Union, or US GAAP. |
The IFRS for SMEs Standard is required or permitted |
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Israel has adopted the IFRS for SMEs Standard without modifications. Details are below. |
The IFRS for SMEs Standard is under consideration |
Organisation
Role of the organisation
Website
Email contact
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
The Israel Accounting Standards Board published Israel Accounting Standard no. 29 in July 2006. That Standard required Israeli companies whose shares or debt securities are publicly traded to file IFRS financial statements for periods starting 1 January 2008.
The first IFRS financial statements were required to include restated comparative figures that were in compliance with IFRS Standards. Such entities were also required to include in their annual financial statements for the year ended 31 December 2007 a note with a balance sheet as of 31 December 2007 and an income statement for the year ended 31 December 2007 that complied with IFRS Standards.
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
All domestic companies whose securities trade in a public market only in Israel are required to use IFRS Standards except for banking institutions (listed and unlisted, including credit card companies). Banking institutions are subject to the reporting requirements of the Banking Supervision Department of the Bank of Israel. As such they are required to apply only some IFRS Standards that are not related to their core banking business. That is, essentially banks do not apply the IFRS financial instruments standards or pension standards.Instead, banks are required to follow standards that are similar to US GAAP in those areas.
For domestic companies whose securities trade in a public market both in Israel and in another jurisdiction (dual listed companies) see information below.
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
All with the exception of:
- dual listed companies (see information below); and
- banking institutions (listed and unlisted, including credit cards companies) that are subject to reporting requirements of the Banking Supervision Department of the Bank of Israel, as explained above.
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
Foreign companies whose securities trade in a public market in Israel, except in the following situations, are required to use IFRS Standards in their consolidated financial statements.
Companies whose securities are traded both in Israel and in specified other stock exchanges (dual listed companies) are allowed to file in Israel financial statements according to IFRS Standards, IFRS Standards as adopted by the European Union, or US GAAP.
In addition, even if it is not dual listed, a foreign issuer that meets the following conditions at the time of its initial public offering is allowed to use IFRS Standards, IFRS Standards as adopted by the European Union, or US GAAP:
- more than 50% of its revenue is not received in Israel; and
- control of the issuer is not held by permanent residents of Israel.
In such a case, if a foreign issuer (that is not dual listed) prepares its financial statements in accordance with US GAAP, it is required to disclose a reconciliation to IFRS Standards.
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
IFRS Standards.
The auditor's report and the basis of presentation footnote both include an assertion of compliance with IFRS Standards and with the disclosure requirements of the Securities Law Regulations (Annual Financial Statements), 2010. Those disclosure requirements do not contradict the IFRS Standards.
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
If the jurisdiction has made any modifications, what are those modifications?
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
Other comments regarding use of the IFRS for SMEs Standard?
General requirements for companies for-profit entities
Entities that are not subject to Securities Act report mainly in accordance with Israeli GAAP and do not have to file their financial statements publicly.
For entities such as Banks and Credit Companies the format is PDF. Banks will report (publicly) to the Banks Supervisor using the XBRL format in accordance with Israeli GAAP.Listed companies
General requirement for companies
Listed companies
Organisation
What type or format of structured electronic filing is required or permitted?
What is the purpose of the electronic filing?
- disclosure for investors and credit analysts in capital markets;
- reviewing filings as a securities regulator;
- use by the Tel Aviv Stock Exchange for its purposes; and
- use by distributors of commercial information
What documents are required to be filed to the electronic filing system?
Is the financial data provided in XBRL format publicly available?
Is the XBRL reporting system based on the IFRS Taxonomy issued by the IASB?
If no, what are the reasons for not using the IFRS Taxonomy?
Is the IFRS for SMEs filing adopted in the XBRL reporting system?
If no, are there any plans to implement the IFRS for SMEs filing in the future?
How is the XBRL financial statement reporting system set up?
What is (are) the intended purpose(s) of the local base taxonomy?
Which IFRS Taxonomy files are used?





Which part(s) of the IFRS (local) Taxonomy do filer's submissions import/refer to?




Are filers permitted to replace or override any aspects or specified features of the IFRS (local) Taxonomy?
If yes, which aspects and how does this work?

What is the scope or coverage of XBRL filing/tagging?
Are there any plans to extend the coverage of the XBRL filing/tagging in the future?
Which version of the IFRS Taxonomy is being used
2016 IFRS® Taxonomy
If the taxonomy is to be updated to the 2015/2016 version, which of the following module(s) is (are) to be used?

Since reporting is done in Hebrew (and afterwards converted into English), using full IFRS taxonomy is generally not suitable. The local base taxonomy is based on full IFRS Standards only with regard to statement of financial position, income statement and additional data from Statement of Cash Flows.