juanrga :
AMD engineers knew that Bulldozer was going to fail. The project would have been canceled at early phase. However, management decided to continue, with the results that everyone know.
I do not analyze AMD as a company, nor do I analyze their financial statements.
I would say that if AMD engineers knew Bulldozer was going to fail, they probably had no choice but to proceed since diminishing revenues mean less money to devote to R&D. Scrapping Bulldozer in favor of a different CPU architecture would likely have been very costly to AMD if they have done so. That means they would have to spend money and time developing an alternative which in turns means AMD would be reliant on the Phenom II CPUs for a longer period of time. Granted, Bulldozer was more of a "side-grade" than an upgrade to the Phenom II. But, because AMD persevered Piledriver was eventually released and it is an improvement over the Phenom II.
If AMD were to abandon development for Bulldozer and start with a clean slate, that would have meant that all the money they have spent on R&D would have to be immediately expensed instead of capitalized. Capitalizing the R&D expenses means that the total R&D expenses would have been slowly recognized as current expense over the course of 5 years or whatever timetable AMD decided. That would allow the R&D expenses to be netted against revenue over time so that if the product sold well, AMD would have been able to show a profit quarter over quarter.
As stated, abandoning Bulldozer would have meant that AMD would need to immediately expense all R&D expenditures related to Bulldozer. Not doing so would be a severe violation of SEC regulatory rules and US accounting standards. Therefore, whatever amount of money invested into R&D whether it be $500k or $1 billion, the expense would be immediately disclosed and AMD's stock price would have likely taken a severe hit in a shareholder sell off. Depending on the severity of the sell off, it is possible that the stock price could have gone so low that it jeopardizes AMD credit rating which means it makes it both more difficult and expensive to borrow money from financial institutions (which is a very common practice in business) for AMD's daily operations. That leads to even more trouble...