Blackberry 2013 Annual Report Download - page 180

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
A more comprehensive analysis of these factors is contained in “Results of Continuing Operations”.
Critical Accounting Policies and Estimates
General
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. These
estimates and assumptions are based upon management’s historical experience and are believed by management to be reasonable
under the circumstances. Such estimates and assumptions are evaluated on an ongoing basis and form the basis for making judgments
about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from
these estimates.
The Company’s critical accounting policies and estimates have been reviewed and discussed with the Company’s Audit & Risk
Management Committee and are set out below. The Company’s significant accounting policies are described in Note 1 to the
Consolidated Financial Statements. Except as noted below, there have not been any changes to the Company’s critical accounting
policies and estimates during the past three fiscal years.
Revenue Recognition
The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable
and earned when it has persuasive evidence of an arrangement, the product has been delivered or the services have been provided to
the customer, the sales price is fixed or determinable and collection is reasonably assured. In addition to this general policy, the
following paragraphs describe the specific revenue recognition policies for each of the Company’s major categories of revenue.
H
ardware
Revenue from the sale of BlackBerry wireless hardware products (e.g. BlackBerry handheld devices and BlackBerry PlayBook™
tablets) is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or
determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of
loss have been transferred. For most of the Company’s product sales, these criteria are met at the time the product is shipped. For
hardware products for which the software is deemed essential to the functionality of the hardware, the Company recognizes revenue
in accordance with general revenue recognition accounting guidance.
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