BlackBerry Limited reported the following (adapted) information in the notes accompanying its 2014 financial statements:
Current Assets ............................ (in millions of US dollars)
Cash and cash equivalents ................ $1,579
Short-term investments (fair value) ...... 950
Assume that the carrying value of BlackBerry's short-term investments is $945 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 BlackBerry if you determine that a journal entry was needed at year end.