Incredimail 2013 Annual Report Download - page 105

PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
The consolidated financial statements include the accounts of Perion and its subsidiaries. Intercompany balances and
transactions have been eliminated upon consolidation.
The Company considers short-
term unrestricted highly liquid investments that are readily convertible into cash, purchased
with original maturities of three months or less to be cash equivalents.
Restricted cash as of December 31, 2012 and December 31, 2013 is primarily due to the
payment to former shareholders
of SweetIM (refer to Note 3 for further details).
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-
line method over the estimated useful lives of the assets at the following annual rates:
Leasehold improvements are depreciated using the straight-
line method over the term of the lease or the estimated useful
life of the improvements, whichever is shorter.
Property and equipment and intangible assets subject to amortization are reviewed for impairment in accordance with
ASC 360, "Accounting for the Impairment or Disposal of Long-
Lived Assets", whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held
and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected
to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by
the amount by which the carrying amount of the assets exceeds the fair value of the assets. For each of the three years in
the period ended December 31, 2013, no impairment losses have been identified.
In determining the fair values of long-
lived assets for purpose of measuring impairment, Company's assumptions include
those that market participants will consider in valuations of similar assets.
NOTE 2:
-
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
c.
Principles of consolidation:
d.
Cash equivalents:
e.
Restricted cash:
f.
Property and equipment:
%
Computers and peripheral equipment
33
Office furniture and equipment
7
-
15
g.
Impairment of long
-
lived assets and intangible assets subject to amortization:
F
-
13