Blackberry 2013 Annual Report Download - page 117

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 (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, The Company provides platforms and solutions for seamless access to information,
including email, voice, instant messaging, short message service, Internet and intranet-based applications and browsing. The
Company’s 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. The Company’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 BlackBerry 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
“BB” and on the NASDAQ Global Select Market under the symbol “BBRY”.
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’s 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 years ending March 2, 2013 and February 26, 2011 comprise 52 weeks and the fiscal year ended March 3,
2012 comprises 53 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, provisions for warranty, revenue related estimates including vendor-specific objective evidence of selling price
(“VSOE”), best estimated selling price (“BESP”), right of return and customer incentive commitments, royalties, implied fair
value of goodwill, amortization expense, fair values of assets acquired and liabilities assumed in business combinations,
provision for income taxes, realization of deferred income tax assets and the related components of the valuation allowance,
allowance for doubtful accounts, 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