Incredimail 2010 Annual Report Download - page 100

INCREDIMAIL LTD AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors,
including, for example, the type of investment, the liquidity of markets and other characteristics particular to the
transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the
market, the determination of fair value requires more judgment, and categorizes as Level 3.
The Company’
s marketable securities trade in markets that are not considered active, but are valued based on quoted
market prices, broker or dealer quotations, and therefore are categorized as Level 2.
The Company's assets measured at fair value on a recurring basis as of December 31, 2010, included money market funds
and treasury notes in the total amount of $9,094,000 presented as part of cash and cash equivalents, marketable securities
in the amount of $14,973,000 and derivative financial instruments, in the amount of $27,000 presented in other receivables
and prepaid expenses, all measured using input type Level 2. The Company's assets measured at fair value on a recurring
basis as of December 31, 2009, included money market funds and treasury notes in the total amount of $7,839,000
presented as part of cash and cash equivalents, marketable securities in the amount of $5,225,000 and derivative financial
instruments, in the amount of $36,000 presented in other receivables and prepaid expenses, all measured using input type
Level 2.
The Company repurchases its Ordinary shares from time to time on the open market and holds such shares as treasury
shares. The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity.
Adoption of New Accounting Standards:
In January 2010, the FASB updated the "Fair Value Measurements Disclosures" codified in ASC 820. More specifically,
this update require (a) an entity to disclose separately the amounts of significant transfers in and out of Levels 1 and 2 fair
value measurements and to describe the reasons for the transfers; and (b) information about purchases, sales, issuances and
settlements to be presented separately (i.e. present the activity on a gross basis rather than net) in the reconciliation for fair
value measurements using significant unobservable inputs (Level 3 inputs). This update clarifies existing disclosure
requirements for the level of disaggregation used for classes of assets and liabilities measured at fair value, and requires
disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair
value measurements using Level 2 and Level 3 inputs. The adoption of the new guidance did not have a material impact
on the Company's consolidated financial statements.
In February 2010, the FASB issued ASU 2010-09 -
amendments to certain recognition and disclosure requirements of
Subsequent Events codified in ASC 855. This update removes the requirement to disclose the date through which
subsequent events were evaluated in both originally issued and reissued financial statements for "SEC Filers."
Nevertheless still requires the Company to evaluate subsequent events through the date that the financial statements are
issued. The adoption of the new guidance did not have a material impact on the Company's consolidated financial
statements.
NOTE 2:
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SIGNIFICANT ACCOUNTING POLICIES (Cont.)
t.
Treasury shares:
u.
Impact of Recently Issued Accounting Standards
F
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