All advances (personnel and to municipalities) are automatically expensed in Bisan Syst at time of issue, however, a sub-ledger is maintained within Bisan Syst to keep track of the outstanding receivables due from advances. These amounts should be summarized by type and forms part of the end of year reporting in the notes to the financial statements. Advances to municipalities to cover electricity and water charges deducted automatically by the Israeli providers might be considered as “net lending” to the municipalities should the underlying agreements support such classification. If so, this must be highlighted in the notes to the financial statements.