Blackberry 2013 Annual Report Download - page 127

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
years beginning on or after December 15, 2011, with early adoption permitted. The Company adopted the guidance in the first
quarter of fiscal 2013. The adoption did not have a material impact on the Company’s results of operations, financial condition
or disclosures.
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 consolidated statement of changes in shareholders’ 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 addition, the amended guidance requires 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
became effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2011 and is
to be applied retrospectively, with early adoption permitted. The Company adopted the guidance in the first quarter of fiscal
2013, and as a result, has chosen to present the total of comprehensive income, the components of net income, and the
components of other comprehensive income in two separate but consecutive statements.
In May 2011, the FASB, as a result of work performed with the International Accounting Standards Board, issued authoritative
guidance to achieve common fair value measurement and disclosure requirements in U.S. GAAP and International Financial
Reporting Standards (“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 measurement 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 became effective for interim
and annual periods beginning on or after December 15, 2011. The Company adopted the guidance in the first quarter of fiscal
2013. The adoption did not have a material impact on the Company’s results of operations or financial condition. Additional
disclosure has been added to note 3 to present the significant unobservable inputs used in the fair value measurement of each of
the Level 3 assets as well as the impact on the fair value measurement resulting from a significant increase or decrease in each
input in isolation.
In February 2013, the FASB issued authoritative guidance to improve the reporting of reclassifications out of accumulated other
comprehensive income. The guidance requires an entity to report the effect of significant reclassifications out of accumulated
other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S.
GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be
reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures
required under U.S. GAAP that provide
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3. RECENTLY ISSUED PRONOUNCEMENTS