Blackberry 2001 Annual Report Download - page 36

Research In Motion Limited >Incorporated Under the Laws of Ontario >United States dollars, in thousands except per share data
(a) Income taxes –For the years ended February 29, 2000 and February 28, 1999, under Canadian GAAP the
Company used the deferral method of accounting for income taxes such that deferred assets or liabilities arise
from differences between financial statement income and taxable income. For the year ended February 28, 2001,
there is no longer any material difference in accounting for income taxes between Canadian GAAP and U.S.
GAAP as a result of the accounting policy change in note 1(j).
The tax effects of significant temporary differences in the prior year under U.S. GAAP are as follows:
February 29, 2000
Assets
Income tax losses available for carryforward $ 1,212
Financing costs 4,819
Research and development incentives 2,945
$ 8,976
Liabilities
Capital assets 4,270
Net future income tax assets $ 4,706
(b) Start-up costs –The Company has capitalized as at February 28, 2001 the expenses incurred during the start-up
of the Company’s United Kingdom operations, scheduled to commence later in fiscal 2002. U.S. GAAP, Statement
of Position 98-5, Reporting on the Cost of Start-up Activities, prescribes that start-up costs should be expensed
as incurred.
(c) Change in functional currency –Effective August 31, 1999, the Company adopted the U.S. dollar as its
reporting currency. Prior to this change the Canadian dollar had been used as the Company’s reporting currency.
Under Canadian GAAP, the Company’s financial statements for all periods presented through August 31, 1999
have been translated from Canadian dollars to U.S. dollars using the exchange rate in effect at August 31, 1999.
Under U.S. GAAP, the financial statements for the periods prior to the change in reporting currency must be
translated to U.S. dollars using the current rate method, which uses specific year end and specific annual average
exchange rates as appropriate. The significant differences arising from the application of the current rate
method to the periods presented are the effects on net income and comprehensive income described above.
(d) Statements of comprehensive income –U.S. GAAP, SFAS 130, Reporting Comprehensive Income, establishes
standards for the reporting and display of comprehensive income and its components in general-purpose financial
statements. Comprehensive income is defined as the change in net assets of a business enterprise during a period
from transactions and other events and circumstances from non-owner sources, and includes all changes in equity
during a period except those resulting from investments by owners and distributions to owners. The only reportable
item of comprehensive income is the foreign currency translation in note 17 (c).
(e) Earnings per share –The following table sets forth the computation of basic and diluted earnings per share
under U.S. GAAP.
For the year ended
February 28, 2001 February 29, 2000 February 28, 1999
Numerator for basic and diluted earnings (loss) per share
available to common stockholders $ (7,568) $ 10,170 $ 6,723
Denominator for diluted earnings (loss) per share –
adjusted weighted average shares
and assumed conversions 73,555 72,996 66,855
Earnings (loss) per share under U.S. GAAP
Basic $ (0.10) $ 0.15 $ 0.10
Diluted $ (0.10) $ 0.14 $ 0.10
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