As mentioned in the chapter, Research in Motion Inc. (RIM) is the Canadian company that developed the

Question:

As mentioned in the chapter, Research in Motion Inc. (RIM) is the Canadian company that developed the famous BlackBerry communications device. To answer the questions that follow, refer to Note 12 from RIM's 2010 financial statements, which appears in Exhibit 9-6 on pages 604-605.
Required:
a. Part (a) of the note describes a demand credit facility. What does RIM use the credit facility for? As at the end of its 2010 fiscal year, what portion of this had the company used?
b. The demand credit facility is described as unsecured. What does this mean? Would the company be able to get a lower interest rate if its was secured? Explain.
c. Part (c) of the note describes RIM's involvement in various legal events. For the settlement of the litigation with Vista, RIM expensed $163.8 million. Had this amount been accrued as a liability in the company's previous financial statements? Explain your answer.
d. As a result of the Vista settlement, what amount did RIM record as an intangible asset? Does it seem reasonable that RIM would record some of the costs of a patent lawsuit as an intangible asset? (If you need to review , refer back to Chapter 8).
Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...