Incredimail 2011 Annual Report Download - page 109

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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:
-
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
t.
Treasury shares:
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.
u.
Comprehensive income:
The Company accounts for comprehensive income in accordance with ASC 220, "Comprehensive Income". This statement establishes
standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements.
Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by,
or distributions to, shareholders. The Company determined that its items of other comprehensive income relates to unrealized gains and losses
on available for sale securities.
v.
Business combinations:
The Company accounts for business combination in accordance with ASC 805, "Business Combinations". The underlying principles require
that the Company recognize separately from goodwill the assets acquired and the liabilities assumed, generally at their acquisition date fair
values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values
of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price
allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Company's estimates are inherently
uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the
Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion
of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent
adjustments are recorded in the consolidated statement of income. The direct transaction costs associated with the business combination are
expensed as incurred.
F
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22