Case study Apple Inc. and Retrospective Adoption of Revenue Recognition Rules 1.)1. Should the FASB have overturned the software revenue recognition portion within ASC 985-605? As part of your explanation, consider whether firms will now have too much flexibility to manipulate revenues. 2. Is Apples explanation for why it adopted the new rules retrospectively clear (Exhibit 1)? Is it valid? 3. Is Apples explanation of how it implemented the new rules clear (Exhibit 2)? Is the new revenue recognition/ deferral method reasonable?