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INCREDIMAIL LTD AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In October 2009, the FASB issued “Accounting Standards Update (“ASU”) 2009-
13 Multiple Deliverable Revenue
Arrangements a consensus of EITF” (formerly topic 08-1) an amendment to ASC 605-
25. The update provides
amendments to the criteria in Subtopic 605-25 for separating consideration in multiple-
deliverable arrangements. The
amendments in this update establish a selling price hierarchy for determining the selling price of a deliverable. The selling
price used for each deliverable will be based on vendor-specific objective evidence if available, third-
party evidence if
vendor-specific objective evidence is not available, or estimated selling price if neither vendor-
specific objective evidence
nor third-party evidence is available. The amendments in this update will also replace the term “fair value”
in the revenue
allocation guidance with the term “selling price” in order to clarify that the allocation of revenue is based on entity-
specific assumptions rather than assumptions of a marketplace participant.
The amendments will also eliminate the residual method of allocation and require that arrangement consideration be
allocated at the inception of the arrangement to all deliverables using the relative selling price method. The relative selling
price method allocates any discount in the arrangement proportionally to each deliverable on the basis of each
deliverable's selling price.
The update will be effective for revenue arrangements entered into or modified in fiscal years beginning on or after June
15, 2010 with earlier adoption permitted. The adoption of this update is not expected to have material impact on the
Company’s consolidated financial statements.
Certain amounts in prior years’
financial statements have been reclassified in order to conform to current year
presentation.
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, 2009 and 2010:
On April 1, 2009, the Company adopted the accounting pronouncement that provides guidance on recognition and presentation
of other-than-temporary impairments and assessed whether the unrealized losses for the investments in its portfolio were other-
than-temporary under this guidance.
NOTE 2:
-
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
1.
Recently Issued Accounting Standards
v.
Reclassification
NOTE 3:
-
MARKETABLE SECURITIES
Amortized cost
Gross unrealized
gains
Gross unrealized
losses
Fair value
December 31,
December 31,
December 31,
December 31,
2009
2010
2009
2010
2009
2010
2009
2010
U.S. dollars in thousands
Corporate debentures
$
3,262
$
6
805
$
210
$
116
$
$
$
3,471
$
6,912
U.S. Government agency
debentures
-
7,405
-
10
-
13
-
7,402
Government debentures
1,687
218
67
20
-
-
1,754
238
U.S. municipal bonds
-
419
-
2
-
-
-
421
$
4,949
$
1 4,847
$
277
$
148
$
$
22
$
5,225
$
14,973
F
-
18