{"url_path":"/sec/forty/10-k/2026/item-16c","section_key":"item-16c","section_title":"Item 16C PRINCIPAL ACCOUNTANT FEES AND SERVICES**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/1045986/0001213900-26-055948-index.html","accession_number":"0001213900-26-055948","cik":"0001045986","ticker":"FORTY","issuer_name":"FORMULA SYSTEMS (1985) LTD","edgar_url":"https://www.sec.gov/Archives/edgar/data/1045986/0001213900-26-055948-index.html","primary_entity_key":"0001045986","primary_entity_name":"FORMULA SYSTEMS (1985) LTD"},"word_count":529,"has_tables":true,"body_markdown":"**ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**\n\n \n\n**Principal Accountant\nFees and Services**\n\n \n\nFormula and its subsidiaries\npaid the following fees for professional services rendered by Ziv Haft Certified Public Accountants, a member firm of BDO International\nLimited, or BDO Israel, which became our independent registered public accounting firm on July 11, 2024, for the years ended December\n31, 2024 and December 31, 2025, respectively:\n\n \n\n  \nYear Ended\nDecember 31, \n\nServices Rendered \n**2024**(3)  \n2025 \n\nAudit (1) \n$1,736  \n$2,080 \n\nTax and other (2) \n$182  \n$211 \n\nTotal \n$1,918  \n$2,291 \n\n \n\n(1)\nThe audit fees for the years ended December 31, 2024 and 2025 were for professional services rendered for: the audit of our annual consolidated financial statements; agreed-upon procedures related to the review of our consolidated quarterly information; statutory audits of Formula and its subsidiary companies; issuance of comfort letters and consents; and assistance with review of documents furnished to, or filed with, the SEC.\n\n \n\n(2)\nTax and other fees for the years ended December 31, 2024 and 2025, were for services related to tax compliance, including the preparation of tax returns and claims for refund, and tax advice.\n\n \n\n(3)Including $1,122 for services\napproved prior to signing engagement letter as auditors.\n\n \n\n175\n\n \n\n \n\nFormula paid the following\nfees for professional services rendered by BDO Israel to Formula (on a stand-alone basis, excluding services provided to the subsidiaries\nand affiliates of Formula) for the years ended December 31, 2025 and 2024:\n\n \n\n  \nYear Ended\nDecember 31, \n\n  \n**2024**(3)  \n2025 \n\n  \n(US dollars in thousands) \n\nServices Rendered \n  \n\nAudit (1) \n$91  \n$90 \n\nTax and other (2) \n$3  \n$10 \n\nTotal \n$94  \n$100 \n\n \n\n(1)\nThe audit fees for the years ended December 31, 2025 and 2024 were for professional services rendered for: the audit of our annual consolidated financial statements; agreed-upon procedures related to the review of our consolidated quarterly information; statutory audits of Formula and its subsidiaries and affiliated companies; issuance of comfort letters and consents; and assistance with review of documents furnished to, or filed with, the SEC.\n\n \n\n(2)\nTax and other fees for the years ended December 31, 2025 and 2024 were for services related to tax compliance, including the preparation of tax returns and claims for refund, and tax advice.\n\n \n\n(3)\nIncluding $9 for services approved prior to signing engagement letter as auditors\n\n \n\n**Policy on Pre-Approval of Audit and Non-Audit\nServices of Independent Auditors**\n\n \n\nOur audit committee is responsible\nfor the oversight of our (and our subsidiaries’) independent auditor’s work. Our audit committee has adopted a policy and\nprocedures for the pre-approval of audit and non-audit services rendered by our independent registered public accountants, BDO Israel.\nPre-approval of an audit or non-audit service may be given as a general pre-approval, as part of the audit committee’s approval\nof the scope of the engagement of our independent auditor, or on an individual basis. Any proposed services that exceed general pre-approved\nlevels also require specific pre-approval by our audit committee. The policy prohibits retention of the independent public accountants\nto perform the prohibited non-audit functions defined in Section 201 of the Sarbanes-Oxley Act of 2002 or the rules of the SEC, and also\nrequires the audit committee to consider whether proposed services are compatible with the independence of the public accountants."}