Blackberry 2009 Annual Report Download - page 27

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25
International Financial Reporting Standards
In November 2008, the SEC announced a proposed
roadmap for comment regarding the potential use by U.S.
issuers of financial statements prepared in accordance with
International Financial Reporting Standards (“IFRS”). IFRS is
a comprehensive series of accounting standards published
by the International Accounting Standards Board. Under
the proposed roadmap, the Company may be required to
prepare financial statements and accompanying notes in
accordance with IFRS in fiscal 2015. The SEC will make a
determination in 2011 regarding the mandatory adoption
of IFRS. The Company is currently assessing the impact
that this proposed change would have on the consolidated
financial statements, accompanying notes and disclosures,
and will continue to monitor the development of the potential
implementation of IFRS.
Restatement of Previously Issued Financial Statements
Overview
As discussed in greater detail under “Explanatory Note
Regarding the Restatement of Previously Issued Financial
Statements” in the MD&A for the fiscal year ended March
3, 2007 and Note 12(c) to the audited consolidated financial
statements of the Company for the fiscal year ended March
3, 2007, the Company restated its consolidated balance
sheet as of March 4, 2006 and its consolidated statements
of operations, consolidated statements of cash flows and
consolidated statements of shareholders’ equity for the
fiscal years ended March 4, 2006 and February 26, 2005, and
the related note disclosures (the “Restatement”), to reflect
additional non-cash stock compensation expense relating to
certain stock-based awards granted prior to the adoption of
the Company’s stock option plan on December 4, 1996 (as
amended from time to time, the “Stock Option Plan”) and
certain stock option grants during the 1997 through 2006
fiscal periods, as well as certain adjustments related to the
tax accounting for deductible stock option expenses. The
Restatement was the result of a voluntary internal review
(the “Review”) by the Company of its historical stock option
granting practices. The Restatement did not result in a
change in the Company’s previously reported revenues,
total cash and cash equivalents or net cash provided from
operating activities.
OSC Settlement
As previously disclosed, on February 5, 2009, a panel of
Commissioners of the Ontario Securities Commission (“OSC”)
approved a settlement agreement with the Company, Jim
combinations in which control was obtained by transferring
consideration. SFAS 141(R) applies to all transactions and
other events in which one entity obtains control over one
or more other businesses. SFAS 141(R) is effective for fiscal
years beginning after December 15, 2008 and the Company
will adopt the standard in the first quarter of fiscal 2010
and its effects are not material to the Company’s results
of operations and financial condition, as of the filing date,
including an acquisition subsequent to year end.
Noncontrolling Interests in Consolidated Financial Statements –
an amendment of ARB 51
In December 2007, the FASB issued SFAS 160 Noncontrolling
Interests in Consolidated Financial Statements – an
amendment of ARB 51 (“SFAS 160”). SFAS 160 requires that
the noncontrolling interest in the equity of a subsidiary be
accounted for and reported as equity, provides revised
guidance on the treatment of net income and losses
attributable to the noncontrolling interest and changes in
ownership interests in a subsidiary and requires additional
disclosures that identify and distinguish between the interests
of the controlling and noncontrolling owners. The Company
will adopt the standard in the first quarter of fiscal 2010 and
does not expect the adoption of SFAS 160 to have a material
effect on the Company’s results of operations and financial
condition.
Determination of the Useful Life of Intangible Assets
In April 2008, the FASB issued FSP SFAS 142-3 Determination
of the Useful Life of Intangible Assets (“FSP SFAS 142-3”). FSP
SFAS 142-3 amends the factors that should be considered
in developing renewal or extension assumptions used to
determine the useful life of the recognized intangible asset
under SFAS 142 Goodwill and Other Intangible Assets
(“SFAS 142”). The intent of the guidance is to improve the
consistency between the useful life of a recognized intangible
asset under SFAS 142 and the period of expected cash
flows used to measure the fair value of the asset under SFAS
141(R). For a recognized intangible asset, an entity will be
required to disclose information that enables users of the
financial statements to assess the extent to which expected
future cash flows associated with the asset are affected
by the entity’s intent and/or ability to renew or extend the
arrangement. FSP SFAS 142-3 is effective for fiscal years
beginning after December 15, 2008. The Company will
adopt the standard in the first quarter of fiscal 2010 and the
Company does not expect the adoption will have a material
impact on the Company’s result of operations and financial
condition.