Annual reports filed by certain Canadian issuers pursuant to Section 15(d) and Rule 15d-4

EMPLOYEE BENEFIT ASSETS AND LIABILITIES

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EMPLOYEE BENEFIT ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2019
Employee Benefit Assets And Liabilities [Abstract]  
EMPLOYEE BENEFIT ASSETS AND LIABILITIES [Text Block]

NOTE 13:- EMPLOYEE BENEFIT ASSETS AND LIABILITIES

Employee benefits consist of short-term benefits and post-employment benefits.

Post-employment benefits:

According to the labor laws and Severance Pay Law in Israel, the Group is required to pay compensation to an employee upon dismissal or retirement or to make current contributions in defined contribution plans pursuant to Section 14 to the Severance Pay Law, as specified below. The Group's liability is accounted for as a post-employment benefit only for employees not under Section 14. The computation of the Group's employee benefit liability is made in accordance with a valid employment contract or a collective employees agreement based on the employee's salary and employment term which establish the entitlement to receive the compensation.

The post-employment employee benefits are normally financed by contributions classified as defined benefit plans, as detailed below:

a. Defined benefit plans:

The Group accounts for the payment of compensation, that is not covered by contributions in defined contribution plans, as above, as a defined benefit plan for which an employee benefit liability is recognized and for which the Group deposits amounts in a long-term employee benefit fund and in qualifying insurance policies.

b. Expenses recognized in the consolidated statements of profit or loss and other comprehensive income:

    Year ended December 31,
December 31,		  
    2020     2019  
             
Current service cost $ 166   $ 134  
Interest expenses   10     9  
             
Total employee benefit expenses   176     143  
             
Interest income on plan assets $ 4   $ 4  

c. The defined benefit liability (asset), net:

    December 31,  
    2020     2019  
             
Defined benefit obligation $ 588   $ 390  
Fair value of plan assets   (217 )   (128 )
             
Net defined benefit liability $ 371   $ 262  

d. Changes in the present value of defined benefit liabilities:

    2020     2019  
             
Balance at January 1, $ 390   $ 261  
             
Current service cost   166     134  
Interest expenses   10     9  
Benefits paid   (23 )   (54 )
Re-measurement loss on defined benefit plans   32     29  
Foreign currency translation effect   13     11  
             
Balance at December 31, $ 588   $ 390  

e. Changes in the fair value of plan assets:

Plan assets comprise assets held by a long-term employee benefit funds and qualifying insurance policies.

    2020     2019  
             
Balance at January 1, $ 128   $ 85  
             
Interest income   4     4  
Return, net of interest income - remeasurement gain (loss)   2     (1 )
Benefits paid   (23 )   (54 )
Amounts deposited   101     92  
Foreign currency translation effect   5     2  
             
Balance at December 31, $ 217   $ 128  

f. The principal assumptions underlying the defined benefit plan:

 

2020

 

2019

 

%

 

 

 

 

Discount rate

2.58

 

2.87

Salary growth

3.37

 

3.24

Based on reasonably possible changes of the principal assumptions underlying the defined benefit plan as mentioned above, occurring at the end of the reporting period, the changes would have an immaterial effect on the consolidated financial statements.