Extent of IFRS application | Status | Additional Information |
---|---|---|
IFRS Accounting Standards are required for domestic public companies | 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 Accounting Standards are permitted but not required for domestic public companies | ||
IFRS Accounting Standards are required or permitted for listings by foreign companies | 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 Accounting Standard is required or permitted | Israel has adopted the IFRS for SMEs Standard without modifications. Details are below. | |
The IFRS for SMEs Accounting Standard is under consideration |
Profile last updated: 16 June 2016
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.
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.
All with the exception of:
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:
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.
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.