Case Name :      Blackberry 10

Authors :           Mary Gillett, Morgan Hart

Source :              Ivey Publishing

Case ID :           9B15B008 / W15361

Discipline :        Accounting

Case Length :    10 pages

Plagiarism : NO (100% Original work)

A well-reputed innovative technology company had introduced a new operating system and two new smartphone devices with the goal of turning around the company’s slumping hardware sales. Despite positive product reviews in the media, the models did not sell as well as expected. Consequently, the lower demand led to impairment of inventory and supply commitments at various times throughout the following fiscal year. At the end of the fiscal year, the task facing the company’s chief financial officer was deciding whether or not further impairment was required. Because this decision came at a time of significant uncertainty about the company’s future in the competitive marketplace, the task also involved considering the impact of a potential adjustment on the company’s financial statements and on shareholder confidence.