Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 180

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 18
Chunk 180
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 that can be recognized based upon three-years taxable income forecast which carryforward losses can be offset. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
 
Deferred tax assets that were not recognized are reevaluated at each reporting date and recognized if it has become probable that future taxable profits will be available against which they can be utilized.
 

L.        Financing     
     income and expenses
------------------------
 
Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either financing income or financing expenses depending on whether foreign currency movements are in a net gain or net loss position. 
 
In the statements of cash flows, interest paid is presented as part of cash flows from financing activities.
 
 
F-21
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Note 2 - Material Accounting Policies (Cont.)
 

M.    Financial  
     instruments:
-----------------

  1.    Financial
          assets 
-----------------
 
Financial assets are measured on the date of initial recognition at fair value plus transaction costs which are directly attributable to the acquisition of the financial asset, except in case of a financial asset measured at fair value through profit or loss, for which the transaction costs are carried to the statement of income.
 
The Company classifies and measures the debt instruments in its financial statements based on the following criteria:
  
(A)                                   The                                 
      Company’s business model for the management of financial assets; and
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(B)   The                                                                 
      characteristics of the financial asset’s contractual cash flows.    
  
The Company has investments in financial assets measured at fair value through profit or loss (see also Note 7, Note 8 and Note 11) and other debt instruments measured at amortized cost.
 

  2.         Impairment    
        of financial assets
---------------------------
 
The Company evaluates, on each reporting date, the loss provision in respect of financial debt instruments which are not measured at fair value through profit or loss.
 
The Company distinguishes between two situations involving recognition of a loss provision.
 
A)Debt instruments whose credit quality has not significantly deteriorated since the initial recognition date, or cases involving low credit risk – the loss provision which will be recognized in respect of that debt instrument will take into account expected credit loss during the 12 month period after the reporting date; or
 
B) Debt instruments whose credit quality has significantly deteriorated since the initial recognition date, and cases involving credit risk which is not low – the loss provision