Company: INCR
Filing Date: 2025-05-01
Form Type: 20-F
Source: 0001641172-25-007971
Chunk: 181

Company: Intercure Ltd.
Filing Date: 2025-05-01
Form: 20-F
Item: Item 18
Chunk 181
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 which will be recognized will take into account expected credit losses throughout the instrument’s remaining lifetime.
 
 
F-22
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Note 2 - Material Accounting Policies (Cont.)
 
The Company applies the expedient, which was determined in the standard, according to which it assumes that a debt instrument’s credit risk has not significantly increased since the initial recognition date if it was determined, on the reporting date, that the instrument’s credit risk is low, for example, when the instrument has an external rating of “investment grade”.
 
Impairment in respect of debt instruments which are measured at amortized cost is carried to the statement of income against a provision. 
 
The Company has also financial assets with short credit periods, such as trade receivables, to which it is entitled to apply the expedient specified in the model, i.e., the Company will measure the loss provision in an amount equal to the expected credit losses throughout the instrument’s entire lifetime. The Company chose to adopt the expedient in respect of those financial assets. 
 
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. 
 

  3.                  Financial               
        liabilities measured at amortized cost
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The financial liabilities measured at amortized cost include mainly loans and borrowings from banks, bank overdrafts, finance lease liabilities, and trade and other payables.
 

N.          Fair      
     value measurement
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All assets and liabilities which are measured at fair value, or whose fair value was disclosed, are divided into categories in the fair value hierarchy, based on the lowest level of inputs which is significant to the measurement of fair value in its entirety:
 

Level                                                              1:                                                          
               Quoted prices (without adjustments) in an active market of identical assets and liabilities (See Note 7).       
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Level   Inputs                                                                                                                 
2:      which are not quoted prices which are included in level 1, which are directly or indirectly observable.                
Level   Inputs                                                                                                                 
3:      which are not based on observable market data, as described in Note 6 – Biological Assets, and Note 11 – Investments in
        financial assets measured at fair value through profit or loss (investments in companies in the biomed sector).        

F-23
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