PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS, NET
|12 Months Ended
Dec. 31, 2020
|Disclosure Of Detailed Information About Property Plant And Equipment And Intangible Assets [Abstract]
|PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS, NET [Text Block]
NOTE 11:- PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS, NET
a. Property, Plant and equipment, net:
b. Intangible assets, net:
*) The licenses consist of GMP and GDP licenses. The GMP and GDP licenses have indefinite life.
c. Impairment of goodwill and intangible assets:
The recoverable amount of the intangible assets and the goodwill was determined based on the value in use which is calculated at the expected estimated future cash flows from Adjupharm, as determined according to the budget for the next three years and approved by the Company's management. The pre-tax discount rate of the cash flows is 12.15%. The projected cash flows for the period exceeding three years was estimated using a fixed growth rate of 2%, representing the long-term average growth rate as customary in Adjupharm's business.
Sensitivity analysis of changes in assumptions:
With respect to the assumptions used in determining the value in use of Adjupharm, management believes that there are no potential changes in the key assumptions which might lead to a significant increase in the carrying amount of Adjupharm over its recoverable amount.