Research in Motion (RIM) Limited (now called BlackBerry) reported the following (adapted) information in the notes accompanying its 2011 financial statements:

Current Assets (in millions of U.S. dollars)

Cash.........................................................................$ 288

Short-term investments (fair value)....................................$2,410

Assume that the carrying value of RIM's short-term investments is $2,405 million prior to the year-end adjustment to fair value.

Required

Write a note to identify the method used to report short-term investments, and to disclose cost and fair value. Show the journal entry that would have been made by RIM if you determine that a journal entry was needed at year end.