Blackberry 2012 Annual Report Download - page 122

Research In Motion Limited
Notes to the Consolidated Financial Statements
In millions of United States dollars, except share and per share data, and except as otherwise indicated
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
information, including email, voice, instant messaging, short message service (SMS), Internet and intranet-based applications
and browsing. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products
and services through software development kits, wireless connectivity to data and third-party support programs. RIM’s portfolio
of award-winning products, services and embedded technologies are used by thousands of organizations and millions of
consumers around the world and include the BlackBerry® wireless solution, the RIM Wireless Handheld™ product line, the
BlackBerry® PlayBook™ tablet, software development tools and other software and hardware. The Company’s sales and
marketing efforts include collaboration with strategic partners and distribution channels, as well as its own supporting sales and
marketing teams, to promote the sale of its products and services. 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 Global Select Market under the symbol “RIMM”.
Basis of presentation and preparation
The consolidated financial statements include the accounts of all subsidiaries of the Company with intercompany transactions
and balances eliminated on consolidation. All of the Company’s subsidiaries are wholly-owned. 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 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 year ended March 3, 2012 comprises 53 weeks and the fiscal years ended February 26, 2011 and February 27,
2010 comprise 52 weeks.
The significant accounting policies used in these U.S. GAAP consolidated financial statements are as follows:
Use of estimates
The preparation of the consolidated financial statements requires management to make estimates and assumptions with respect
to the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities.
Significant areas requiring the use of management estimates relate to the determination of reserves for various litigation claims,
provisions for excess and obsolete inventories and liabilities for purchase commitments with contract manufacturers and
suppliers, fair values of assets acquired and liabilities assumed in business combinations, royalties, amortization expense,
implied fair value of goodwill, provision for income taxes, realization of deferred income tax assets and the related components
of the valuation allowance, provisions for warranty and the fair values of financial instruments. Actual results could differ from
these estimates.
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1. RESEARCH IN MOTION LIMITED AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES