4.	Future changes in accounting policies:

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (ASC 606) to clarify the principles of recognizing revenue and to develop a common revenue standard that would remove inconsistencies in revenue requirements, leading to improved comparability of revenue recognition practices across entities and industries. The standard, as subsequently amended, stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance will be effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2017. The Company plans to adopt the standard under the modified retrospective approach on January 1, 2018 and has identified one ongoing significant collaboration agreement with respect to revenue, the collaborative research and license agreement with Genentech, a member of the Roche Group, described in note 11b. The Company has evaluated the new guidance and does not expect a material impact on the Company’s financial statements as a result of the application of the guidance on revenue previously recognized under this agreement. In addition, application of the new guidance is also not expected to result in a material change in the amount or timing of revenues recognized, as compared to prior practice, as it relates to the milestone and royalty payments the Company is eligible to receive in future periods under this agreement.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): Recognition and Measurement of Financial Assets and Financial Liabilities. The update requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. The new guidance retains a distinction between finance leases and operating leases, with cash payments from operating leases classified within operating activities in the statement of cash flows. These amendments will be effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the new guidance to determine the impact it will have on the Company’s consolidated financial statements.