Incredimail 2011 Annual Report Download - page 100

PERION NETWORK LTD. AND ITS SUBSIDIARIES
(Formerly: Incredimail Ltd.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
NOTE 3:
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SIGNIFICANT ACCOUNTING POLICIES (Cont.)
e.
Marketable securities:
The Company accounts for investments in debt securities in accordance with ASC 320, "Investments -
Debt and Equity Securities".
Management determines the appropriate classification of its investments in debt securities at the time of purchase and reevaluates such
determinations at each balance sheet date.
At December 31, 2010, all marketable securities were designated as available
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for
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sale and, as such, are carried at fair value. Unrealized gains
and losses are comprised of the difference between market value and amortized costs of such securities and are reflected, net of tax, as
“accumulated other comprehensive income” in shareholders’
equity. Realized gains and losses on marketable securities are included in
earnings and are derived using the specific identification method for determining the cost of securities.
The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization
together with interest and dividends on securities are included in "financial income, net".
The Company recognizes an impairment charge when a decline in the fair value of its investments in debt securities is below the cost basis of
such securities is judged to be other-than-
temporary. Factors considered in making such a determination include the duration and severity of the
impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more
likely than not that the Company will be required to sell the investment before recovery of cost basis. For securities that are deemed other-than-
temporarily impaired, the amount of impairment is recognized in the statement of income and is limited to the amount related to credit losses,
while impairment related to other factors is recognized in other comprehensive income.
f.
Property and equipment:
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:
%
Computers and peripheral equipment
33
Office furniture and equipment
7
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15
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.
F
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13