| I. |
Property, plant and equipment:
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Property, plant and equipment are tangible items, which are held for use in the manufacture or supply of goods or services, or leased to others, which are predicted to be used for more than one period. The Company presents its property, plant and equipment items according to the cost model.
Under the cost method - a property, plant and equipment are presented at the balance sheet at cost (net of any investment grants), less any accumulated depreciation and any accumulated impairment losses. The cost includes the cost of the assets acquisition as well as costs that can be directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is calculated using the straight-line method at rates considered adequate to depreciate the assets over their estimated useful lives. Amortization of leasehold improvements is computed over the shorter of the term of the lease, including any extension period, where the Company intends to exercise such option, or their useful life.
The annual depreciation and amortization rates are:
| |
Years
|
|
%
|
|
| |
|
|
|
|
|
Land
|
50
|
|
2
|
|
|
Construction
|
25
|
|
4
|
|
|
Motor vehicles
|
5
|
|
15-20
|
(Mainly 20%)
|
|
Office furniture and equipment
|
6
|
|
6-15
|
(Mainly 15%)
|
|
Computers
|
3
|
|
20-33
|
(Mainly 33%)
|
|
Machinery and equipment
|
10
|
|
10
|
|
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Income statement.
