| c. | Translation of balances and transactions in foreign currency: |
| 1. | Functional currency and presentation currency: |
Items included in the Financial Statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “Functional Currency”). The consolidated financial statements are presented in U.S. dollars, which is the Functional Currency of each of the Group’s entities and the Company’s presentation currency.
Below are the exchange rate of the U.S. dollar in relation to the NIS:
| Exchange rate | ||||
| As of | of U.S. $ 1 | |||
| NIS | ||||
| December 31, 2017 | 3.467 | |||
| December 31, 2016 | 3.845 | |||
| 2. | Transactions and balances: |
Transactions in a currency other than the Functional Currency (“Foreign Currency”) are translated into the Functional Currency using the exchange rates at the dates of the transactions. After initial recognition, monetary assets and liabilities denominated in Foreign Currency are translated at the end of each reporting period into the Functional Currency at the exchange rate at that date. Exchange differences are recognized in the statement of comprehensive loss in the line item finance income (expenses), net. Non-monetary assets and liabilities denominated in foreign currency and measured at cost are translated at the exchange rate at the date of the transaction.