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Transition to IFRS (Tables)

12 Months Ended

Dec. 31, 2022

Disclosure Of Transition To Ifrs Abstract

Schedule of consolidated statement of profit or loss

						As of January 1, 2021
		U.S. GAAP				Other GAAP Adjustments and reclassifications				IFRS
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	88,127			$	-			$	88,127
Short-term deposits			289				-				289
Trade receivables, net			91,986				-				91,986
Unbilled receivables and contract assets			19,073				-				19,073
Other accounts receivable and prepaid expenses			11,751				-				11,751
Total current assets			211,226				-				211,226

LONG-TERM ASSETS:
Severance pay fund			4,673				(4,673	)			-
Deferred taxes			6,397				(162	)			6,235
Right-of-use assets			24,509				(1,146	)			23,363
Other accounts receivable			5,507				-				5,507
Property, plants and equipment, net			5,988				-				5,988
Intangible assets, net			53,404				-				53,404
Goodwill			135,682				-				135,682
Total long-term assets			236,160				(5,981	)			230,179

Total assets		$	447,386			$	(5,981	)		$	441,405
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short term debt		$	11,529			$	69			$	11,598
Trade payables			14,250				-				14,250
Accrued expenses and other accounts payable			41,846				(69	)			41,777
Current maturities of operating lease liabilities			3,413				379				3,792
Liabilities in respect of business combinations			4,998				-				4,998
Redeemable non-controlling interests			-				14,611				14,611
Deferred revenue and customer advances			8,793				-				8,793
Total current liabilities			84,829				14,990				99,819

LONG-TERM LIABILITIES:
Long-term debt			13,352				-				13,352
Long-term operating lease liabilities			21,109				121				21,230
Liability in respect of business combinations			10,926				-				10,926
Deferred taxes			17,639				(155	)			17,484
Redeemable non-controlling interests			-				9,315				9,315
Accrued severance pay, net			5,545				(4,673	)			872
Total long-term liabilities			68,571				(4,608	)			73,179

REDEEMABLE NON-CONTROLLING INTEREST			24,980				(24,980	)			-

EQUITY
Share capital			1,164				-				1,164
Additional paid-in capital			211,713				(23,298	)			188,415
Accumulated other comprehensive loss			7,835				(398	)			7,437
Accumulated earnings			39,720				22,953				62,673
Total equity attributable to company shareholders’			260,432				(743	)			259,689
Non-controlling interests			8,574				143				8,718
Total equity			269,006				(600	)			268,407
Total liabilities, redeemable non-controlling interest and equity		$	447,386			$	(5,981	)		$	441,405

						As of December 31, 2021
		U.S. GAAP				Other GAAP Adjustments and reclassifications				IFRS
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	88,090			$	-			$	88,090
Short-term deposits			5,586				-				5,586
Trade receivables, net			116,975				-				116,975
Unbilled receivables and contract assets			25,096				-				25,096
Other accounts receivable and prepaid expenses			11,032				(5	)			11,027
Total current assets			246,779				(5	)			246,774

LONG-TERM ASSETS:
Severance pay fund			3,646				(3,646	)			-
Deferred taxes			8,091				(98	)			7,993
Right-of-use assets			24,299				(1,019	)			23,280
Other accounts receivable			5,165				-				5,165
Property, plants and equipment, net			5,872				-				5,872
Intangible assets, net			51,390				-				51,390
Goodwill			146,803				-				146,803
Total long-term assets			245,266				(4,763	)			240,503

Total assets		$	492,045			$	(4,768	)		$	487,277
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short term debt		$	17,032			$	76			$	17,108
Trade payables			24,711				-				24,711
Accrued expenses and other accounts payable			45,173				(82	)			45,091
Current maturities of operating lease liabilities			3,943				(676	)			3,267
Liabilities in respect of business combinations			6,635				-				6,635
Redeemable non-controlling interests			-				23,197				23,197
Deferred revenue and customer advances			10,771				-				10,771
Total current liabilities			108,265				22,515				130,780

LONG-TERM LIABILITIES:
Long-term debt			20,155				-				20,155
Long-term operating lease liabilities			20,970				937				21,907
Liability in respect of business combinations			13,892				-				13,892
Deferred taxes			18,112				(167	)			17,945
Redeemable non-controlling interests			-				6,137				6,137
Accrued severance pay, net			4,551				(3,646	)			905
Total long-term liabilities			77,680				3,261				80,941

REDEEMABLE NON-CONTROLLING INTEREST			30,432				(30,432	)			-

EQUITY
Share capital			1,165				-				1,165
Additional paid-in capital			211,543				(27,496	)			184,047
Accumulated other comprehensive loss			9,294				(30	)			9,264
Accumulated earnings			43,246				27,414				70,660
Total equity attributable to company shareholders’			265,248				(112	)			265,136
Non-controlling interests			10,420				-				10,420
Total equity			275,668				(112	)			275,556
Total liabilities, redeemable non-controlling interest and equity		$	492,045			$	(4,768	)		$	487,277

Schedule of consolidated statement of profit or loss

						Year ended December 31, 2021
		U.S. GAAP				GAAP Adjustments and reclassifications				IFRS
Revenues
Software services		$	30,934			$	-			$	30,934
Maintenance and technical support			36,149				-				36,149
Consulting services			413,242				-				413,242

Total revenues			480,325				-				480,325

Cost of revenues:
Software services			12,182				-				12,182
Maintenance and technical support			4,144				-				4,144
Consulting services			331,005				-				331,005

Total cost of revenues			347,331				-				347,331

Gross profit			132,994				-				132,994

Research and development expenses, net			8,995				-				8,995
Selling, marketing expenses			38,147				-				38,147
General and administrative expenses			32,110				(888	)			31,222
Change in valuation of contingent consideration related to acquisitions			2,507				-				2,507

Operating income			51,235				888				52,123

Financial expenses			(3,268	)			(534	)			(3,802	)
Financial income			113				-				113
Increase in valuation of consideration related to acquisitions			(2,817	)			-				(2,817	)

Income before taxes on income			45,263				354				45,617
Taxes on income			10,359				(81	)			10,278

Net income			34,904				435				35,339

Attributable to:
Redeemable non-controlling interests			3,517				(3,517	)			-
Non-controlling interests			2,055				3,517				5,572
Equity holders of the Company		$	29,332			$	435			$	29,767

Net earnings per share attributable to company Shareholders

Basic and diluted earnings per share		$	0.52			$	0.09			$	0.61

Schedule of consolidated statement of profit or loss

		Share Capital				Additional paid-in capital				Retained earnings				Accumulated other comprehensive income (loss)				Total Equity attributable to Magic’s shareholders
		As of January 1, 2021
As reported in the Company’s consolidated financial statements as of January 1, 2021 in accordance with U.S. GAAP:		$	1,164			$	211,713			$	39,720			$	7,835			$	260,432
Transition to IFRS:
Measurement adjustments related to leases			-				-				(1,654	)			-				(1,654	)
Measurement adjustments related to redeemable non-controlling interests			-				(23,298	)			24,607				(398	)			911
			-				(23,298	)			22,953				(398	)			(743	)

As of January 1, 2021 in accordance with IFRS:		$	1,164			$	188,415			$	62,673			$	7,437			$	259,689

		As of December 31, 2021
As reported in the Company’s consolidated financial statements as of December 31, 2021 in accordance with U.S. GAAP:		$	1,165			$	211,543			$	43,246			$	9,294			$	265,248

Transition to IFRS:
Measurement adjustments related to leases			-				-				(1,210	)			-				(1,210	)
Measurement adjustments related to redeemable non-controlling interests			-				(27,496	)			28,624				(30	)			1,098
			-				(27,496	)			27,414				(30	)			(112	)

As of December 31, 2021 in accordance with IFRS:		$	1,165			$	184,047			$	70,660			$	9,264			$	265,136