XML 32 R15.htm IDEA: XBRL DOCUMENT

Investments in Companies Accounted for at Equity Method

12 Months Ended

Dec. 31, 2021

Description of accounting policy for investments other than investments accounted for using equity method [text block] [Abstract]

INVESTMENTS IN COMPANIES ACCOUNTED FOR AT EQUITY METHOD

Note 7:-

Investments in companies accounted for at equity METHOD

The following table summarizes the Group’s investments in companies accounted for at equity:

		December 31,
		2021				2020
TSG (Joint venture)			27,633				27,165
Other investments			1,267				1,146
			28,900				28,311

Investment in TSG

a.

The Company holds directly a 50% share interest in the issued and outstanding share capital of TSG, a joint venture engaged in the fields of command-and-control systems, intelligence, homeland security and cyber security. The Company’s investment in TSG is reflected in the consolidated financial statements using the equity method of accounting. At the acquisition date the Company attributed an amount of $2,140 to a separate component of dividend preference derivative. The dividend preference derivative is measured at fair value through profit or loss and is presented in the consolidated statements of financial position under long-term prepaid expenses, other accounts and other investments.

b.

The following table summarizes the balances related to the Company’s investment in TSG in the consolidated statements of financial position:

		December 31,
		2021				2020
Investment in companies accounted for at equity method
Shares			18,391				18,225
Capital note			9,242				8,940
			27,633				27,165
Long-term prepaid expenses, other accounts, and other investments
Dividend preference derivative at fair value through profit or loss			2,023				1,707

c.

The following table summarizes the changes in the fair value of TSG’s dividend preference derivative:

		December 31,
		2021				2020
Opening balance			1,707				1,539
Increase in fair value recognized in profit or loss			255				48
Currency exchange rate in other comprehensive income			61				120
Closing balance			2,023				1,707

d.

The following table summarizes the changes in the carrying amount of the Company’s investment in TSG:

January 1, 2019		$	25,683
Company’s share of profit			1,771
Company’s share of other comprehensive income			62
Company’s Share in dividend declared by TSG			(1,500	)
December 31, 2019		$	26,016

Company’s share of profit			1,318
Company’s share of other comprehensive income			(169	)
December 31, 2020		$	27,165

Company’s share of profit			340
Company’s share of other comprehensive income			128
December 31, 2021		$	27,633

e.

The following table summarizes financial information of TSG:

(i)

Summarized statement of financial position in accordance with IFRS as of December 31, 2020 and 2021 (as presented in TSG’s financial statements):


		December 31,
		2021				2020
Current assets			47,065				51,056
Noncurrent assets excluding goodwill			8,551				4,810
Current liabilities			(25,167	)			(26,201	)
Noncurrent liabilities			(6,299	)			(8,414	)
Total equity			24,150				21,251
Accumulated cost of share-based payment			(1,282	)			(743	)
		$	22,868			$	20,508
Company’s share in TSG			50	%			50	%
			11,434				10,254
Excess cost of intangible assets net of deferred tax			6,363				7,075
Goodwill			9,836				9,836
Company’s carrying amount of the investment in TSG		$	27,633			$	27,165

(ii)

The following table presents key highlights of TSG’s profit or loss in accordance with IFRS for the years ended December 31, 2019, 2020 and 2021 (as presented in TSG’s financial statements):

		Year ended December 31,
		2021				2020				2019
Revenues			77,035				77,661				84,350
Net income			2,104				4,059				4,966
Other comprehensive income			255				(338	)			124

Total comprehensive income			2,359				3,721				5,090

Company’s share in TSG			50	%			50	%			50	%
			1,180				1,861				2,545
Amortization of excess cost of intangible assets net of tax			(712	)			(712	)			(712	)
Company’s share of total comprehensive income			468				1,149				1,833

Company’s share of other comprehensive income			128				(169	)			62
Company’s share of profit			340				1,318				1,771
			468				1,149				1,833