Blackberry 2003 Annual Report Download - page 53

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Research฀In฀Motion฀Limited฀฀|฀฀Incorporated฀Under฀the฀Laws฀of฀Ontario฀(United฀States฀dollars,฀in฀thousands฀except฀per฀share฀data฀or฀as฀otherwise฀indicated)
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For฀the฀years฀ended฀March฀1,฀2003,฀March฀2,฀2002฀and฀February฀28,฀2001
In฀July฀2002,฀the฀FASB฀issued฀SFAS฀No.฀146,฀“Accounting฀for฀Costs฀Associated฀with฀Exit฀or฀Disposal฀
Activities,”฀which฀requires฀companies฀to฀recognize฀costs฀associated฀with฀exit฀or฀disposal฀activities฀
when฀they฀are฀incurred฀rather฀than฀at฀the฀date฀of฀a฀commitment฀to฀an฀exit฀or฀disposal฀plan.฀SFAS฀
No.฀146฀is฀to฀be฀applied฀prospectively฀to฀exit฀or฀disposal฀activities฀initiated฀after฀December฀31,฀2002.฀
There฀was฀no฀effect฀on฀the฀adoption฀of฀SFAS฀No.฀146฀on฀the฀Company’s฀results฀of฀operations฀and฀
nancial฀position฀for฀2003฀and฀prior฀years.
In฀November฀2002,฀the฀FASB฀issued฀Interpretation฀No.฀45฀“Guarantor’s฀Accounting฀and฀Disclosure฀
Requirements฀for฀Guarantees,฀Including฀Indirect฀Guarantees฀of฀Indebtedness฀of฀Others”฀(“FIN฀45”),฀
which฀requires฀certain฀disclosures฀of฀obligations฀under฀guarantees.฀The฀disclosure฀requirements฀of฀
FIN฀45฀are฀effective฀for฀the฀Company’s฀year฀ended฀March฀1,฀2003.฀An฀additional฀disclosure฀require-
ment฀under฀FIN฀45฀relates฀to฀product฀warranty฀as฀described฀in฀note฀1฀and฀21฀(f).฀FIN฀45฀also฀requires฀the฀
recognition฀of฀a฀liability฀by฀a฀guarantor฀at฀the฀inception฀of฀certain฀guarantees฀entered฀into฀or฀modied฀
after฀December฀31,฀2002,฀based฀on฀the฀fair฀value฀of฀the฀guarantee.฀There฀was฀no฀effect฀on฀the฀adoption฀
of฀the฀measurement฀requirement฀of฀FIN฀45฀on฀the฀Company’s฀results฀of฀operations฀and฀nancial฀
position฀for฀2003฀and฀prior฀years.
The฀Emerging฀Issues฀Task฀Force฀reached฀a฀consensus฀on฀Issue฀00-21,฀addressing฀how฀to฀account฀for฀
arrangements฀that฀involve฀the฀delivery฀or฀performance฀of฀multiple฀products,฀services,฀and/or฀rights฀
to฀use฀assets.฀Revenue฀arrangements฀with฀multiple฀deliverables฀are฀divided฀into฀separate฀units฀of฀
accounting฀if฀the฀deliverables฀in฀the฀arrangement฀meet฀the฀following฀criteria:฀(a)฀the฀delivered฀item฀has฀
value฀to฀the฀customer฀on฀a฀standalone฀basis;฀(b)฀there฀is฀objective฀and฀reliable฀evidence฀of฀the฀fair฀value฀
of฀undelivered฀items;฀and฀(c)฀delivery฀of฀any฀undelivered฀item฀is฀probable.฀Arrangement฀consideration฀
should฀be฀allocated฀among฀the฀separate฀units฀of฀accounting฀based฀on฀their฀relative฀fair฀values,฀with฀
the฀amount฀allocated฀to฀the฀delivered฀item฀being฀limited฀to฀the฀amount฀that฀is฀not฀contingent฀on฀the฀
delivery฀of฀additional฀items฀or฀meeting฀other฀specied฀performance฀conditions.฀The฀nal฀consensus฀
will฀be฀applicable฀to฀agreements฀entered฀into฀in฀scal฀periods฀beginning฀after฀June฀15,฀2003฀with฀early฀
adoption฀permitted.฀The฀Company฀is฀currently฀evaluating฀the฀impact฀of฀adoption฀on฀the฀consolidated฀
nancial฀statements.
In฀December฀2002,฀the฀FASB฀issued฀SFAS฀No.฀148,฀“Accounting฀for฀Stock-Based฀Compensation฀–฀
Transition฀and฀Disclosure,฀an฀amendment฀of฀FASB฀Statement฀No.฀123.”฀This฀Statement฀amends฀FASB฀
Statement฀No.฀123,฀“Accounting฀for฀Stock-Based฀Compensation,”฀to฀provide฀alternative฀methods฀of฀
transition฀for฀a฀voluntary฀change฀to฀the฀fair฀value฀method฀of฀accounting฀for฀stock-based฀employee฀
compensation.฀In฀addition,฀this฀Statement฀amends฀the฀disclosure฀requirements฀of฀Statement฀
No.฀123฀to฀require฀prominent฀disclosures฀in฀both฀annual฀and฀interim฀nancial฀statements.฀Certain฀
of฀the฀disclosure฀modications฀are฀required฀for฀scal฀years฀ending฀after฀December฀15,฀2002฀and฀
are฀included฀in฀the฀notes฀to฀these฀consolidated฀nancial฀statements.