Incredimail 2012 Annual Report Download - page 103

PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
The reporting currency of the Company is the U.S. dollar. Most of the Company’
s revenues are generated in U.S. dollars
("dollar"). In addition, a substantial portion of the Company’
s costs are incurred in dollars. The Company's management
believes that the dollar is the currency of the primary economic environment in which it operates. Thus, the Company’
s
functional currency is the dollar .
Accordingly, monetary accounts maintained in currencies other than the dollar are remeasured into dollars, in accordance
with Accounting Standards Codification ("ASC") 830, "Foreign Currency Matters". All transaction gains and losses of the
remeasured monetary balance sheet items are reflected in the statement of income as financial income or expenses, as
appropriate.
The consolidated financial statements include the accounts of Perion and its subsidiaries. Intercompany balances and
transactions have been eliminated upon consolidation.
The Company considers short-
term unrestricted highly liquid investments that are readily convertible into cash, purchased
with original maturities of three months or less to be cash equivalents.
Restricted cash is primarily due to the payment to former shareholders of Sweet IM (refer to Note 3 for further details).
The remaining balance is comprised of deposits used primarily as security for rented premises.
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:
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.
NOTE 2:
-
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
b.
Financial statements in U.S. dollars:
c.
Principles of consolidation:
d.
Cash equivalents:
e.
Restricted cash:
f.
Property and equipment:
%
Computers and peripheral equipment
33
Office furniture and equipment
7
-
15
F
-
11