Blackberry 2005 Annual Report Download - page 39

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37
Equity Method of Accounting to Investments
In June 2004, the Emerging Issues Task Force released Issue No. 03-01 Whether an Investor Should Apply the
Equity Method of Accounting to Investments other than Common Stock (“EITF 02-14”). EITF 02-14 addresses
the situation where an investor does not own an investment in the common stock, but exercises significant
influence over the financial and operating policies of the Company. EITF 02-14 goes on to state that the equity
method of accounting for investments should only be applied when the investor has investments in common
stock, or in-substance common stock and have significant influence over the Company. The Company has
determined that the adoption of EITF 02-14 has no impact on the Company’s financial statements.
Inventory Costs
In November 2004, the FASB issued SFAS 151 Inventory Costs. SFAS 151 amends Accounting Research Bulletin
(“ARB”) 43 to clarify the accounting treatment of several abnormal inventory type costs. This standard is in
effect for fiscal years beginning after June 15, 2005. The Company does not expect that the adoption of this
standard will have a significant impact on its consolidated financial statements.
Exchanges of Non-Monetary Assets
In December 2004, the FASB issued SFAS 153 Exchanges of Non-Monetary Assets. SFAS 153 amends APB
Opinion 29 to eliminate the exception for non-monetary exchanges of similar productive assets and replaces
it with a general exception for exchanges of non-monetary assets that do not have commercial substance.
This standard is in effect for fiscal years beginning after June 15, 2005. The Company does not expect that
the adoption of this standard will have a significant impact on its consolidated financial statements.
For the years ended February 26, 2005, February 28, 2004 and March 1, 2003