Galai committee was established in order to set a regulation of financial risks' presentation. The committee adopts the international standards regarding the measurement of asset's fair value (IAS 32, IFRS 7) and published its requirements as follows;
The standardization defines the financial instruments which require references:
· Commodities and services
· Balance/ off balance sheet liabilities
· Other sensitive financial instrument
The entity is required to present sensitivity tests regarding market risks' exposures for each type of financial instrument. Market risk holds the fair value or cash flows derived from a financial instrument which will vary due to changes in market prices. In addition, market risks reflect the interest rate risk, currency risk, changing in consumer's price index, securities prices and other price risks.
De-Kalo Ben-Yehuda & Co is set to implement the recommendations and requirements of Galai Committee.The implementation of these recommendations and requirements is a complex procedure which involves data collection, analysis and evaluation of the sensitive financial instruments. |
