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GOODWILL
 12 Months Ended
Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Disclosure [Text Block]
NOTE 9:- GOODWILL

 

Changes in the carrying amount of goodwill for the years ended December 31, 2010 and 2011 according to the Company's reporting units are as follows:

 

    IT
professional
services		     Software
services		     Total  
                   
As of January 1, 2010   $ 5,089     $ 11,646     $ 16,735  
                         
Investments in subsidiaries     7,339               7,339  
Foreign currency translation adjustments     -       550       550  
                         
As of December 31, 2010     12,428       12,196       24,624  
                         
Business combination     -       14,245       14,245  
Adjustments due to purchase price allocation     (520 )     -       (520 )
Foreign currency translation adjustments     -       185       185  
                         
As of December 31, 2011   $ 11,908     $ 26,626     $ 38,534  

 

The Company determined the fair value of each reporting unit using the income approach. The material assumptions used for the income approach for 2010 and 2011 were four years of projected net cash flows, a discount rate of 14%-15% and a long-term growth rate of 3.0%. The Company considered historical rates and current market conditions when determining the discount and growth rates to use in its analyses. If these estimates or their related assumptions change in the future, the Company may be required to record impairment charges for its goodwill.