Blackberry 2010 Annual Report Download - page 48

Market values are determined for each individual security in the investment portfolio. The Company assesses
declines in the value of individual investments for impairment to determine whether the decline is
other-than-temporary. The Company makes this assessment by considering available evidence, including
changes in general market conditions, specific industry and individual company data, the length of time and
the extent to which the fair value has been less than cost, the financial condition, the near-term prospects of
the individual investment and the Company’s ability and intent to hold the debt securities to maturity. During
fiscal 2010 and for fiscal 2009, the Company did not record an other-than-temporary impairment charge.
Disclosure Controls and Procedures and Internal Controls
Disclosure Controls and Procedures
As of February 27, 2010, the Company carried out an evaluation, under the supervision and with the
participation of the Company’s management, including the Company’s Co-CEOs and its Chief Financial
Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures,
as defined in Rules 13(a)-15(e) and 15(d)-15(e) under the U.S. Exchange Act. Based on that evaluation, the Co-
Chief Executive Officers and the Chief Financial Officer have concluded that, as of such date, the Company’s
disclosure controls and procedures were effective to give reasonable assurance that the information required
to be disclosed by the Company in reports that it files or submits under the U.S. Exchange Act is (i) recorded,
processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and
(ii) accumulated and communicated to management, including its principal executive and principal financial
officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required
disclosure.
Management’s Report on Internal Control Over Financial Reporting
Management of the Company is responsible for establishing and maintaining adequate internal control over
financial reporting. Internal control over financial reporting is defined in Rule 13(a)-15(f) and 15(d)-15(f) under the
U.S. Exchange Act as a process designed by, or under the supervision of, the Company’s principal executive
and principal financial officers and effected by the Company’s Board of Directors, management and other
personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with U.S. GAAP and includes those policies and
procedures that:
• pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the
transactions and dispositions of the assets of the Company;
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with U.S. GAAP, and that receipts and expenditures of the Company are
being made only in accordance with authorizations of management and directors of the Company; and
• provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisitions,
use or dispositions of the Company’s assets that could have a material affect on the Company’s financial
statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of
February 27, 2010. In making this assessment, management used the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework.
Based on this assessment, management believes that, as of February 27, 2010, the Company’s internal control
over financial reporting was effective.
The Company’s independent auditors have issued an audit report on the Company’s internal control over
financial reporting. This report is included with the Consolidated Financial Statements.
Changes in Internal Control Over Financial Reporting
During the fiscal year ended February 27, 2010, no changes were made to the Company’s internal control over
financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s
internal control over financial reporting.
MD&A
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