Advanced Micro Devices generates revenues by selling products to distributors and manufactures and the revenue recognition policies applied by the company as listed here.
- Revenues on goods sold without return privileges are recognized when the company ships these products to distributors or customers.
- Revenues are recognized on sales which have fixed prices.
- Revenues on products sold to buyers for purpose of resale with return privileges are deferred up to the time when these products are resold.
- Revenues are recognized when delivery of products is confirmed and the company is certain that revenues will eventually be collected (Advanced Micro Devices, 2008).
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