Blackberry 1999 Annual Report Download - page 27

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(g) Income taxes -
Income taxes are accounted for using the deferral method of tax allocation under which income taxes are
provided for in the year in which transactions affect net income regardless of when such transactions are
recognized for tax purposes.
(h) Foreign currency translation -
Foreign currency denominated monetary items are translated into Canadian dollars at the exchange rate in
effect at year end. Transactions in foreign currencies are translated at the rate prevailing at the date of the
transactions. Any resulting gains or losses are included in income.
(i) Revenue recognition -
The Company recognizes revenue from the sale of manufactured goods when the goods have been shipped.
Government assistance is recognized when the related expenses have been incurred. Deferred revenue is
taken into income in the period in which it is earned.
(j) Research and development -
The Company is engaged at all times in research and development work. The research and development costs
other than capital asset acquisitions are charged as an operating expense of the Company as incurred unless
they meet generally accepted accounting principles for deferral.
(k) Government assistance -
Government assistance towards research and development expenditures is received as grants from the Ontario
Technology Fund, Technology Partnerships Canada and in the form of investment tax credits. Assistance
related to the acquisition of capital assets used for research and development is credited against the related
capital assets and all other assistance is credited against related expenses.
(l) Earnings per share -
Basic earnings per share is calculated based on the weighted average number of shares outstanding during the
year. Fully diluted earnings per share is calculated on the weighted average number of shares that would have
been outstanding during the year had all the dilutive options been exercised at the beginning of the year, or
date of issuance, if issued during the fiscal year.
2. MARKETABLE SECURITIES
Marketable securities are comprised as follows (in thousands):
1999 1998
Preferred shares $ 13,748 $ 1,750
Bonds and debentures 71,107 11,261
$ 84,855 $ 13,011
The Company has invested in preferred shares of Canadian corporations. Market values of preferred shares,
bonds and debentures approximate carrying value. Investments in bonds and debentures represent holdings in
Canadian corporate and Government notes with approximate average yields of 4.4% (4.7% in 1998).
25
RESEARCH IN MOTION LIMITED
Incorporated Under the Laws of Ontario
Canadian dollars, in thousands, except for earnings per share