Assume an adjustment is necessary - what is the magnitude of the required adjustment? Show your calculations

BLACKBERRY 10 Hart wrote this case under the supervision of Mary Gillett solely to provide material for class discussion. The authors do not intend to illustrate either effecti and other identifying information to protect confic illustrate ether effective or ineffective handling of a managerial situation. The authors may have disguised c dentiality or otherwise reproduced in any form or by any means without the uthorization by any reproduction nights g, Ivey Business School, Western This publication may not be transmitted, photocopied ssion of the copyright holder. Reproduction of this material is not covered under a organization. To order copies or request permission to reproduce materials, contact ivey Publishin University, London, Ontario, Canada, N6G ON1:() 519 661.3208; (e) cases@ivey ca www.iveycases.com Copyright@2015, Richard Iwey School of Business Foundation Version: 2017-10-25 15, 2014 and Blake Caldwell had a decision to make. Caldwell was an investment analyst wit It was April a large pension fund based in Toronto, Ontario, and had been requested by his superiors to revi investment opportunity in Blackberry Limited (BlackBerry). The company had recently gone through a significant period of change and had seen market corresponding decrease in its stock price. It was now Caldwell's job to recommend investment could prove beneficial to his fund. One of the key issues to the investment decision that Caldwell had specifically been asked to comment on was the valuation of the company's new products BlackBerry Z10 (Z10) and BlackBerry Q10 (Q10) smartphones. Inventory of these models had been uilding in the pipelines leading up to year end, and Black Berry had been having difficulty selling the products to wireless carriers, who in turn had been experiencing slow demand from end consumers these warning signs, Caldwell had to think about whether the inventory on the company's balance sheet was valued at the appropriate amount. The inventory was currently valued at cost, and at f Caldwell believed that BlackBerry may not be able to sell all units in inventory at the current prices Caldwell had to determine whether he was correct in this assumption, and if he was, what amount was a realistic valu share and profitability plummet, along with a whether this . Due to irst glance ue to apply to the inventory balance. BlackBerry had been experiencing a difficult year, and in their second quarter, the company had announced an inventory impairment of US$934 million, attributable primarily to Z10 and Q10 smartphones. Caldwell specifically wanted to determine if there should be another similar impairment charge recorded at year end, and if so, what the impact would be on the financial statements. This issue was key to the investment decision as it could have a significant impact on the company's stock price This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives presented in the case are not necessarily those of BlackBerry Limited or any of its employees. Minor changes have been made to the fact pattern of the issue at hand for educational purposes All currency amounts are in U.S. dollars unless specified otherwise BlackBerry, "Management's Discussion and Analysis of Financial Condition and Results of Operations," Fiscal 2014 Annual Report, BlackBerry Limited, p. 10, http://ca.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/Investors/ GovernancelAnnual_Information_Form_Fiscal_2014.pdf, accessed April 25, 2015 BLACKBERRY 10 Hart wrote this case under the supervision of Mary Gillett solely to provide material for class discussion. The authors do not intend to illustrate either effecti and other identifying information to protect confic illustrate ether effective or ineffective handling of a managerial situation. The authors may have disguised c dentiality or otherwise reproduced in any form or by any means without the uthorization by any reproduction nights g, Ivey Business School, Western This publication may not be transmitted, photocopied ssion of the copyright holder. Reproduction of this material is not covered under a organization. To order copies or request permission to reproduce materials, contact ivey Publishin University, London, Ontario, Canada, N6G ON1:() 519 661.3208; (e) cases@ivey ca www.iveycases.com Copyright@2015, Richard Iwey School of Business Foundation Version: 2017-10-25 15, 2014 and Blake Caldwell had a decision to make. Caldwell was an investment analyst wit It was April a large pension fund based in Toronto, Ontario, and had been requested by his superiors to revi investment opportunity in Blackberry Limited (BlackBerry). The company had recently gone through a significant period of change and had seen market corresponding decrease in its stock price. It was now Caldwell's job to recommend investment could prove beneficial to his fund. One of the key issues to the investment decision that Caldwell had specifically been asked to comment on was the valuation of the company's new products BlackBerry Z10 (Z10) and BlackBerry Q10 (Q10) smartphones. Inventory of these models had been uilding in the pipelines leading up to year end, and Black Berry had been having difficulty selling the products to wireless carriers, who in turn had been experiencing slow demand from end consumers these warning signs, Caldwell had to think about whether the inventory on the company's balance sheet was valued at the appropriate amount. The inventory was currently valued at cost, and at f Caldwell believed that BlackBerry may not be able to sell all units in inventory at the current prices Caldwell had to determine whether he was correct in this assumption, and if he was, what amount was a realistic valu share and profitability plummet, along with a whether this . Due to irst glance ue to apply to the inventory balance. BlackBerry had been experiencing a difficult year, and in their second quarter, the company had announced an inventory impairment of US$934 million, attributable primarily to Z10 and Q10 smartphones. Caldwell specifically wanted to determine if there should be another similar impairment charge recorded at year end, and if so, what the impact would be on the financial statements. This issue was key to the investment decision as it could have a significant impact on the company's stock price This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives presented in the case are not necessarily those of BlackBerry Limited or any of its employees. Minor changes have been made to the fact pattern of the issue at hand for educational purposes All currency amounts are in U.S. dollars unless specified otherwise BlackBerry, "Management's Discussion and Analysis of Financial Condition and Results of Operations," Fiscal 2014 Annual Report, BlackBerry Limited, p. 10, http://ca.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/Investors/ GovernancelAnnual_Information_Form_Fiscal_2014.pdf, accessed April 25, 2015