| L. | Revenue recognition |
The Company decided to early adopt IFRS 15, which provides new guidance on revenue recognition, on a retrospective basis.
Based on the examination of the guidance of the standard, no adjustments have been required to be made to the revenue previously recognized, as in 2016 the Company's main revenues were from printer lease transactions accounted for under IAS 17. Accordingly, comparative figures have not been restated to reflect the impact of the retrospective implementation of the standard.
The Company recognizes revenue when the customer obtains control over the promised goods or services. The revenue is measured according to the amount of the consideration to which the Company expects to be entitled in exchange for the goods or services promised to the customer, other than amounts collected for third parties.
On the contract’s inception date the Company assesses the goods or services promised in the contract with the customer and identifies as a performance obligation any promise to transfer to the customer goods or services (or a bundle of goods or services) that are distinct.
The Company identifies goods or services promised to the customer as being distinct when the customer can benefit from the goods or services on their own or in conjunction with other readily available resources and the Company’s promise to transfer the goods or services to the customer is separately identifiable from other promises in the contract.
The Company's identified performance obligations includes: printer, ink, maintenance (which is generally provided for a period of up to one year), training and installation (unless sold to one of the Company's authorized resellers). The Company allocates the transaction price to the identified performance obligations based on the relative estimated standalone selling price of such goods and services.
Revenues allocated to the printers and ink is recognized when the control is passed at a point in time. Currently, the Company also sells its printers through resellers. The Company recognizes revenue to distributors at the time of sale to the distributors, assuming the Company has completed its obligations related to the sale.
Maintenance revenue is recognized ratably, on a straight-line basis, over the period of the services. Revenue from training and installation is recognized during the time of performance.
Revenues from leases transactions are recognized on a straight line basis over the term of the lease.