| d. | Functional currency and foreign currency: |
The financial statements are presented in US Dollars since the Company believes that preparing financial statements in US Dollars provides more relevant information to the investors.
The functional currency of the Company is NIS, which is the currency that best reflects the economic environment in which the Company operates and conducts its transactions.
Since the Company’s functional currency differs from the presentation currency, the financial statements are translated as follows:
| a) | Assets and liabilities at the end of each reporting period (including comparative data) are translated at the closing rate at the end of the reporting period; |
| b) | Income and expenses for each period included in profit or loss (including comparative data) is translated at average exchange rates for the relevant periods; however, if exchange rates fluctuate significantly, income and expenses are translated at the exchange rates at the date of the transactions; |
| c) | Share capital, capital reserves and other changes in capital are translated at the exchange rate prevailing at the date of incurrence or at average exchange rates for the relevant periods; |
| d) | Retained earnings are translated based on the opening balance translated at the exchange rate at that date; |
| e) | All resulting translation differences are recognized as a separate component of other comprehensive income (loss) in equity “foreign currency translation reserve”. |