ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory
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(1) |
Defined contribution plans
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A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an expense in profit or loss in the periods during which related services are rendered by employees.
Contributions to a defined contribution plan that are due more than 12 months after the end of the period in which the employees render the service are discounted to their present value.
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(2) |
Short-term employee benefits
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Short-term employee benefits include wages, vacation days, sick leave, recreation and deposits with the National Insurance Institute of Israel, which are paid within approximately one year of the period in which the employee provides the related service. These benefits are recognized as an expense upon the provision of services.