Blackberry 2002 Annual Report Download - page 34

For periods up to and including August 31, 1999, the monetary assets and liabilities of the Company denominated
in a currency other than the Canadian dollar were translated into Canadian dollars using the exchange rate in effect
at the period-end and revenues and expenses were translated at the average rate during the period. Any resulting
gains or losses were included in income. For periods subsequent to August 31, 1999, transactions which were
incurred in currencies other than the U.S. dollar (the new functional currency) have been converted to U.S. dollars
at the exchange rate in effect at the transaction date. Carrying values of non-U.S. dollar monetary assets and liabilities
are adjusted at each balance sheet date to reflect the functional currency rate in effect at that date and any gains
and losses from this restatement are included in income. Non-monetary assets are translated at the historical
exchange rate on the date of acquisition.
Historical financial statements and notes thereto up to and including August 31, 1999 have been restated into
U.S. dollars, in accordance with Canadian GAAP, using the August 31, 1999 closing exchange rate being a rate of
Cdn.$1.4888 per U.S. $1.00.
18. Summary of Material Differences between Generally Accepted Accounting Principles
(GAAP) in Canada and the United States
The consolidated financial statements of the Company have been prepared in accordance with accounting principles
generally accepted in Canada (“Canadian GAAP”) which conform in all material respects with accounting principles
generally accepted in the United States (“U.S. GAAP”) except as set forth below:
Consolidated Balance Sheets
MARCH 2, 2002 FEBRUARY 28, 2001
Total assets under Canadian GAAP $ 948,157 $ 970,063
Adjustment – Start-up costs (a) (1,199) (1,357)
Total assets under U.S. GAAP $ 946,958 $ 968,706
Total liabilities under Canadian GAAP $ 71,412 $ 67,130
Adjustment – Derivative financial instruments (b) 1,478 –
Total liabilities under U.S. GAAP $ 72,890 $ 67,130
Total shareholders’ equity under Canadian GAAP $ 876,745 $ 902,933
Adjustment – Start-up costs (a) (1,199) (1,357)
Adjustment – Derivative financial instruments (b) (1,478) –
Total shareholders’equity under U.S. GAAP $ 874,068 $ 901,576
Consolidated Statements of Operations
MARCH 2, 2002 FEBRUARY 28, 2001 FEBRUARY 29, 2000
Net income (loss) under Canadian GAAP $ (28,479) $ (6,211) $ 10,498
Adjustments –U.S. GAAP
Start-up costs (a) 158 (1,357) –
Future income taxes (c) ––(336)
Foreign currency translation (d) –– 8
Net income (loss) under U.S. GAAP $ (28,321) $ (7,568) $ 10,170
Statement of comprehensive income (loss) (e)
Net income (loss) under U.S. GAAP $ (28,321) $ (7,568) $ 10,170
Adjustments – other comprehensive income
Derivative financial instruments (b) (1,478) ––
Foreign currency translation (d) ––1,474
Comprehensive income (loss) under U.S. GAAP $ (29,799) $ (7,568) $ 11,644
(a) Start-up costs –The Company had capitalized as at February 28, 2001 the expenses incurred during the start-up
of the Company’s United Kingdom operations. 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.
RESEARCH IN MOTION LIMITED UNITED STATES DOLLARS, IN THOUSANDS EXCEPT PER SHARE DATA, AND EXCEPT AS OTHERWISE INDICATED.
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