Blackberry 2008 Annual Report Download - page 55

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53
(c) Basis of consolidation
The consolidated financial statements include the accounts
of all subsidiaries with intercompany transactions and
balances eliminated on consolidation. All of the Company’s
subsidiaries are wholly-owned.
(d) Use of estimates
The preparation of the Company’s consolidated financial
statements in accordance with U.S. GAAP requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure
of contingent liabilities as at the dates of the consolidated
financial statements and the reported amounts of revenues
and expenses during the reporting periods. Significant
areas requiring the use of management estimates relate to
the determination of reserves for various litigation claims,
allowance for doubtful accounts, provision for excess
and obsolete inventory, fair values of assets acquired and
liabilities assumed in business combinations, amortization
expense, implied fair value of goodwill, realization of deferred
income tax assets and the related components of the
valuation allowance, provision for warranty and the fair values
of financial instruments. Actual results could differ from these
estimates.
(e) Foreign currency translation
The U.S. dollar is the functional and reporting currency of
the Company. Foreign currency denominated assets and
liabilities of the Company and all of its subsidiaries are
translated into U.S. dollars using the temporal method.
Accordingly, monetary assets and liabilities are translated
using the exchange rates in effect at the consolidated
balance sheet date, non-monetary assets and liabilities at
historical exchange rates, and revenues and expenses at the
rates of exchange prevailing when the transactions occurred.
Resulting exchange gains and losses are included in income.
(f) Cash and cash equivalents
Cash and cash equivalents consist of balances with banks and
liquid investments with maturities of three months or less at
the date of acquisition and are carried on the consolidated
balance sheets at fair value.
NATURE OF BUSINESS
Research In Motion Limited (“RIM” or the “Company”) is a
leading designer, manufacturer and marketer of innovative
wireless solutions for the worldwide mobile communications
market. Through the development of integrated hardware,
software and services that support multiple wireless network
standards, RIM provides platforms and solutions for seamless
access to time-sensitive information including email, phone,
short messaging service (SMS), Internet and intranet-based
applications. RIM technology also enables a broad array
of third party developers and manufacturers to enhance
their products and services with wireless connectivity to
data. RIM’s portfolio of award-winning products, services
and embedded technologies are used by thousands of
organizations around the world and include the BlackBerry
wireless solution, software development tools and other
hardware and software. The Company’s sales and marketing
efforts include collaboration with strategic partners and
distribution channel relationships to promote the sales of
its products and services as well as its own supporting sales
and marketing teams. The Company was incorporated on
March 7, 1984 under the Ontario Business Corporations Act.
The Company’s shares are traded on The Toronto Stock
Exchange under the symbol “RIM” and on the NASDAQ
Stock Market under the symbol “RIMM”.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) General
These consolidated financial statements have been prepared
by management in accordance with United States generally
accepted accounting principles (“U.S. GAAP”) on a basis
consistent for all periods presented except as described
in note 2. Certain of the comparative figures have been
reclassified to conform to the current year presentation.
The significant accounting policies used in these U.S.
GAAP consolidated financial statements are as follows:
(b) Fiscal year
The Company’s fiscal year end date is the 52 or 53 weeks
ending on the last Saturday of February, or the first Saturday
of March. The fiscal years ended March 1, 2008 and March 3,
2007 comprise 52 weeks compared to 53 weeks for the fiscal
year ended March 4, 2006.
RESEARCH IN MOTION LIMITED
notes to the consolidated financial statements
In thousands of United States dollars, except share and per share data, and except as otherwise indicated