Blackberry Inventory Case
Read Blackberry’s notes disclosures related to inventory as reported in the annual report, Q3, Q2,
& Q1 of 2014, as well as the income statements for Q3 below. Then answer the following
questions:
1. What expense amount related to inventory decline in value was recorded in each quarter
2. What can we say about the inventory write-down in Q3 except for the fact it was very
large?
3. Approximate how much inventory was sold in Q3 and how much was written down.
4. In your words, explain what a “supply commitments write-down” means.