The outfit has formally announced that starting the first fiscal quarter of 2011, that AMD will begin accounting for its investment in GloFo under the cost method and will no longer recognise any share of chipmaker’s losses in its statements of operations.
This is apparently called a move to “cost-based accounting” and AMD tells us it was triggered by the by ATIC International Investment buying up all the outstanding ordinary shares of Chartered Semiconductor Manufacturing in exchange for newly issued shares in GloFo.
In other words, it does not have the cash to take out ATIC International, being short of an oil field or too and will be scaling down its interest in Globalfoundries. Although it is not telling anyone that. It appears that muttering something about accounting changes while the tech press is still suffering from an post Christmas hangover will mean that it gets away with it.
We have been saying for a while that AMD is set to reduce its input in GlobalFoundries and we expected the outfit to mention the word “deconsolidation” to start being bandied about.
Messing around with accounting terms is hardly the brave thing to do, but it seems that AMD thinks it is better than telling us that it is deconsolidating away from GloFo as fast as its legs will carry it.