Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 179

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 18
Chunk 179
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 by the Company, control is transferred at a point in time that the products are sold to the end customer. In wholesale sales, control is transferred at a point in time that the products are sold to pharmacies that aren’t under the Company’s control.
 
In cases where the products are transferred to the distributor and held by them in consignment until their sale by the distributor to a third party which constitutes the end customer, the Company recognizes revenue from their sale on the date when they are sold by the distributor to the third party.
 
 
F-19
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Note 2 - Material Accounting Policies (Cont.)
 

H.        Property,     
     plant and equipment
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Depreciation is calculated in equal annual rates according to the straight line method, throughout the asset’s useful lifetime, as follows:
  Schedule of Depreciation Rate
 
                               %    
------------------------------------
Machinery and equipment         7-15
Computers                         33
Buildings and greenhouses         10
Bearer plants                      7
 
Cannabis genetics (bearer plants) that were purchased are depreciated when they are in the location and condition necessary for them to be capable of operating in the manner intended by management.
 

I.   Goodwill
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The cash-generating unit to which the goodwill is allocated for the purpose of goodwill impairment test is the Company’s Cannabis segment, which represents the lowest level within the Company at which the goodwill is monitored for internal management purposes. See Note 10
 

J.   Impairment
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Non-financial assets
 
Timing of impairment testing
 
The carrying amounts of the Group’s non-financial assets, other than biological assets, inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.
 
Once a year, on December 31, or more frequently if there are indications of impairment, the Group estimates the recoverable amount of each cash generating unit that contains goodwill, or intangible assets that have indefinite useful lives or are unavailable for use. See also Note 3 and Note 10.
 
 
F-20
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Note 2 - Material Accounting Policies (Cont.)
 

K.      Income  
     tax expense
----------------
 
Deferred taxes
 
Deferred tax assets are recognized for unused carryforward tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. The Company determines the amount of deferred tax assets