Incredimail 2008 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2008 Incredimail annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

F - 18
2008. Early application is encouraged. The adoption of SFAS 161 did not have a material impact on the Company's financial
position, results of operations or cash flows.
In April 2008, the FASB issued FSP 142-3, “Determination of the Useful Life of Intangible Assets” (FSP 142-3). FSP 142-3
amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a
recognized intangible asset under SFAS No. 142, “Goodwill and Other Intangible Assets”. FSP 142-3 is effective for fiscal years
beginning after December 15, 2008. The adoption of FSP 142-3 did not have a material impact on the Company’s financial
position, results of operations or cash flows.
In April 2009, the FASB issued FSP, No. FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary
Impairments, or the FSP. The FSP is intended to provide greater clarity to investors about the credit and noncredit component of an
other-than-temporary impairment event and to more effectively communicate when an other-than-temporary impairment event has
occurred. The FSP applies to fixed maturity securities only and requires separate display of losses related to credit deterioration and
losses related to other market factors. When an entity does not intend to sell the security and it is more likely than not that an entity
will not have to sell the security before recovery of its cost basis, it must recognize the credit component of an other-than-
temporary
impairment in earnings and the remaining portion in other comprehensive income. upon adoption of the FSP, an entity will be
required to record a cumulative-effect adjustment as of the beginning of the period of adoption to reclassify the noncredit
component of a previously recognized other-than-temporary impairment from retained earnings to accumulated other
comprehensive income. The FSP will be effective for us for the quarter ending June 30, 2009. The Company is currently evaluating
the impact of adopting the FSP.
In April 2009, the FASB issued FSP No. FAS 157-
4, Determining Fair Value When the Volume and Level of Activity for the Asset
or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly, or FSP 157-4. FSP 157-4 provides
additional authoritative guidance to assist both issuers and users of financial statements in determining whether a market is active or
inactive, and whether a transaction is distressed. The FSP will be effective for us for the quarter ending June 30, 2009. The
Company does not expect the adoption of FSP 157-4 to have a material impact on our consolidated financial position and results of
operations.
INCREDIMAIL LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3:
-
MARKETABLE SECURITIES AND LONG
-
TERM INVESMENT
a.
Marketable securities:
The Company’s marketable securities are classified as available-for-sale securities and are carried at fair value. The following table
summarizes amortized costs, gross unrealized holding gains and losses and market value of marketable securities as of December
31, 2007 and 2008:
Amortized cost
Gross unrealized
gains
Gross unrealized
losses
Market value
December 31,
December 31,
December 31,
December 31,
2007
2008
2007
2008
2007
2008
2007
2008
U.S. dollars in thousands
Corporate debentures
$
17,631
$
8,370
$
135
$
131
$
5
$
82
$
17,761
$
8,419
Government debentures
50
10,404
-
8
-
41
50
10,371
$
17,681
$
18,774
$
135
$
139
$
5
$
123
$
17,811
$
18,790
The Company reviews various factors in determining whether it should recognize an impairment charge for its marketable
securities, including its intent and ability to hold the investment for a period of time sufficient for any anticipated recovery in
market value, the length of time and extent to which the fair value has been less than its cost basis, the credit ratings of the
securities, the nature of underlying collateral, as applicable and the financial condition and near-term prospects of the issuer. Based
on the Company’s consideration of these factors, the amortized cost of marketable securities as of December 31, 2007 and 2008
was reduced by $247,000 and $956,000, respectively, to reflect other-than-temporary impairment that was recorded in 2007 and
2008 with respect to these securities.
As of December 31, 2008, all marketable securities with unrealized losses, are in a loss position for less than 12 months.