Deferred Expenses and Non-Current Investments

12 Months Ended

Dec. 31, 2019

Deferred Expenses and Non-Current Investments [Abstract]

Deferred Expenses and Non-Current Investments [Text Block]

Note 10 - Deferred Expenses and Non-Current Investments

	December 31
	2018		2019
	NIS		NIS
Deferred expenses (A)		270		156
Subscriber acquisition asset, net (C)		142		160
Deposit used as collateral against hedging transactions		41		-
Bank deposit for loans to Company employees (B)		48		44
Investments in equity-accounted investee		8		6
		509		366

A. For its operations, Bezeq International acquires indefeasible rights of use (“IRU”) from Mediterranean Nautilus (Israel) Ltd. for the acquisition of seabed cable capacities, which are accounted for as service transactions.

Under the contract, Bezeq International has the right of use for capacities until 2022 with an option for an extension until 2027, which Bezeq International is expected to exercise. The value of the service is amortized on a straight line until 2027. The balance of the right of use of capacities is recognized net of impairment of assets in the amount of NIS 32 (see Note 9 for information about impairment of Bezeq International’s assets). The balance of Bezeq International’s liability for the agreement is US$ 8.4.

B. A bank deposit for loans to Company employees without a repayment date

C. Subscriber acquisition assets:

	Subscriber acquisition assets
	NIS
Cost
Balance as at January 1, 2018		196
Additions		164
Disposals		(27	)
Balance as at December 31, 2018		333
Additions		130
Disposals		(25	)
Balance as at December 31, 2019		438
Amortization and impairment losses
Balance as at January 1, 2018		81
Depreciation		108
Disposals		(27	)
Impairment loss		29
Balance as at December 31, 2018		191
Depreciation		112
Disposals		(25	)
Balance as at December 31, 2019		278
Carrying amount
As at January 1, 2018		115
As at January 1, 2019		142
As at December 31, 2019		160