Blackberry 2012 Annual Report Download - page 191

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
In June 2011, the FASB issued authoritative guidance which is expected to improve the comparability, consistency, and transparency
of financial reporting as well as increase the prominence of items reported in other comprehensive income. The guidance amends
previous literature by eliminating the option to present components of other comprehensive income as part of the statement of
changes in stockholders’ equity, among other amendments. The guidance now provides entities with the option to present the total of
comprehensive income, the components of net income, and the components of other comprehensive income either in a single
continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued an
update to defer the requirement for entities to present on the face of the financial statements reclassification adjustments for items that
are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the
components of other comprehensive income are presented. The new authoritative guidance is effective for fiscal years, and interim
periods within those fiscal years, beginning after December 15, 2011 and should be applied retrospectively, with early adoption
permitted. The Company will adopt the guidance in the first quarter of fiscal 2013 and is currently evaluating the impact that the
adoption of this guidance will have on its results of operations, financial condition and disclosures.
In May 2012, the FASB, as a result of work performed with the International Accounting and Standards Board (“IASB”), issued
authoritative guidance to achieve common fair value measurement and disclosure requirements in U.S. GAAP and IFRS. The
guidance is expected to improve the comparability of fair value measurements presented and disclosed in financial statements
prepared in accordance with U.S. GAAP and IFRS. The guidance presents certain amendments to clarify existing fair value
measurements and disclosure requirements such as clarifying the application of the highest and best use and valuation premise
concepts, measuring the fair value of an instrument classified in a reporting entity’s shareholders’ equity and clarifying that a
reporting entity should disclose quantitative information about the unobservable inputs used in a fair value measurements that is
categorized within Level 3 of the fair value hierarchy. Furthermore, the guidance amends previous literature by requiring additional
disclosures about fair value measurements, specifically requesting more information about the valuation processes used for fair value
measurements categorized within Level 3 of the fair value hierarchy as well as presenting sensitivity of the fair value measurements
to changes in unobservable inputs in Level 3 valuations. The guidance also amends previous literature around measuring the fair
value of financial instruments that are managed within a portfolio as well as the application of premiums and discounts in a fair value
measurement. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2011. The
Company will adopt the guidance in the first quarter of fiscal 2013 and is currently evaluating the impact that the adoption of this
guidance will have on its results of operations, financial condition and disclosures.
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