An amendment to the Securities Regulations (Periodic and Immediate Reports) was promulgated in March 2017, whereby small reporting corporations shall be able to publish their financial statements on a bi-annual basis, provided that they have not issued bonds that are being held by the public. In this regard, a “small corporation” is defined in the said regulations.
According to the amendment, corporations that fulfill the criteria for this relief and that opt to switch to a bi-annual reporting model shall not be required to publish any alternative report at the end of the first and third quarters in lieu of the quarterly financial statements.
The amendment will come into effect within thirty days of its promulgation date and, basically, the relief may be implemented as of the first quarter of 2017.
This is a significant relief to small corporations and it is a direct outcome of the efforts of the Israel Securities Authority to ease the regulatory burden on reporting corporations.