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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: AK2004 who wrote (156120)	4/13/2005 7:02:30 PM
From: Buckwheat	Read Replies (2) \| Respond to of 275872

Edited: Albert, the GAAP will suffer. It would be interesting to know what the book value and fair market value of AMD's portion of Spansion is. I've been out of accounting for over 20 years now, but I do remember that gain or loss has to be recorded at some point or points. I'm afraid that by retaining a significant ownership in Spansion, the gains and losses will still be distributed to AMD periodically or up or down adjustments will be made to assets (resulting gain or loss in equity). Another possible downside is "what does this do to AMD's debt structure?" Good, bad, or indifferent..I suspect that most of AMD's debt resides with CPG facilities and equipment and very little resides with Spansion. So will AMD's debt risks profiles change significantly?