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FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2012
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
NOTE 5:- FAIR VALUE MEASUREMENTS

 

In accordance with ASC 820, the Company measures its investment in marketable securities and foreign currency derivative contracts at fair value. Generally marketable securities are classified within Level 1, this is because these assets are valued using quoted prices in active markets. Foreign currency derivative contracts and certain corporate bonds are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments.

 

Contingent consideration is classified within Level 3. The Company values the Level 3 contingent consideration using discounted cash flow of the expected future payments, whose inputs include interest rate.

 

The Company's financial assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of the following dates:

 

    December 31, 2011  
    Fair value measurements using input type  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Government bonds   $ 435     $ -     $ -     $ 435  
Corporate bonds     -       638       -       638  
Equity fund     168       -       -       168  
Foreign currency derivative contracts     -       42       -       42  
                                 
Total financial assets   $ 603     $ 680     $ -     $ 1,283  
                                 
Liabilities:                                
Contingent consideration   $ -     $ -     $ 1,046     $ 1,046  
                                 
Total financials liabilities   $ -     $ -     $ 1,046     $ 1,046  

 

    December 31, 2012  
    Fair value measurements using input type  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Government bonds   $ 427     $ -     $ -     $ 427  
Corporate bonds     -       237       -       237  
Equity fund     226       -       -       226  
Foreign currency derivative contracts     -       156       -       156  
                                 
Total financial assets   $ 653     $ 393     $ -     $ 1,046  
                                 
Liabilities:                                
Contingent consideration   $ -     $ -     $ 1,942     $ 1,942  
                                 
Total financials liabilities   $ -     $ -     $ 1,942     $ 1,942  

 

Fair value measurements using significant unobservable inputs (Level 3):

 

    December 31,  
    2011     2012  
             
Opening balance   $ 480     $ 1,046  
Increase in contingent consideration     750       1,192  
Decrease in contingent consideration due to settlement     (225 )     (315 )
Amortization of interest     41       19  
                 
Closing balance   $ 1,046     $ 1,942