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.
Is Apples explanation for why it adopted the new rules retrospectively clear (Exhibit 1)? Is it valid?
Is Apples explanation of how it implemented the new rules clearly stated (Exhibit 2)? Is the new revenue recognition/deferral method reasonable?
Explain the changes to Apples 2008 and 2009 balance sheets and its 2007, 2008, and 2009 income statements (Exhibit 3). Do the restated financial statements better reflect Apples financial condition?
Why are there no revised statements of cash flows in Note 2 of the 2009 10-K/A (Exhibit 3)?
Provide in-text citations and references
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