Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Depreciation of Property, Plant and Equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful life of the assets at the following annual rates:

		%
Machinery and equipment		15 - 33
Office furniture and equipment		6 - 33
Leasehold improvements		*

* Over the shorter term of the lease or the useful life of the asset

Schedule of Effects of New Standard on Consolidated Balance Sheet

Effects of the initial application of the new standard on the Company's consolidated balance sheet as of January 1, 2019:

	According to the previous accounting policy		The change			As presented according to Topic 842
			US$ thousands
Operating leases right-of-use		-		3,424			3,424
Prepaid expenses		90		(90	)		-
Operating lease liabilities		-		(3,334	)		(3,334	)

Computation of Basic and Diluted Income Per Ordinary Share

The following table summarizes information related to the computation of basic and diluted income per ordinary share for the years indicated.

	Year ended December 31
	2017		2018		2019
Net income attributable to ordinary shares
(US$ thousands)		21,714		14,637		10,236

Weighted average number of ordinary shares outstanding
used in basic income per ordinary share calculation		7,455,528		7,552,094		7,520,389

Add assumed exercise of outstanding dilutive potential
ordinary shares		146,443		105,236		52,228

Weighted average number of ordinary shares outstanding
used in diluted income per ordinary share calculation		7,601,971		7,657,330		7,572,617

Basic income per ordinary shares (US$)		2.912		1.938		1.361

Diluted income per ordinary shares (US$)		2.856		1.912		1.352

Weighted average number of shares related to options
and RSUs excluded from the diluted earnings per share
calculation because of anti-dilutive effect		-		171,086		351,610