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Zynga and Glu Essay Example

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Zynga and Glu

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Zynga and Glu. The revenue recognition policies between Zynga and Glu companies have both similarities and differences. Both companies have policies which respect the general operations of the companies. Managers should mark the brands and ensure that the products work effectively. Both companies’ policies require that the management should carry out marketing and impose new marketing strategies. Both companies also hold their accountants and financial managers responsible for compiling all financial reports and accounting statements. The compiled report is used to improving company’s progress. The policies concerning the platform in which the games should be published also differs. Glu’s games are made available on all Smartphone while the Zynga games are available at iOS and Androids.

In making income the two companies differ. Glu generates their income from the sales of the games to individuals who download from digital storefronts like Google Play Store. On the other hand, Zynga does not generate income from the sale of the game, but they provide the games for free. Glue also provides or creates games using third party licenses like Robocop while Zynga creates the game using their license only. Glu is concerned more with the partnership in order to make sales and creation of games. Zynga does not work with partners in bringing up new games. Zynga has expanded his market due to investment on brand, people, and infrastructure but Glue tries to use third party and partnership in production. The similarity between the two companies is that they provide games to mobile users regardless of the location (Form 10-K, 2014).
In the 2013 Form 10-K, Zynga includes the SEC’s comments which are related to revenue recognition in their 2014 Form 10-K. those comments included areas covering effectiveness of procedure and control limitation, changes in financial reporting over the internal control and management reporting. The management of the company is given the mandate of maintaining and establishing effective internal control on issues of financial reporting as elaborated in the Exchange Act, Rule 13a-15(f).  . Zynga and Glu.

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Form 10-K (2014). United States Securities and Exchange Commission. Retrieved December 31, 2014, from http://www.sec.gov/Archives/edgar/data/1439404/000119312515060187/d833276d10k.htm#toc833276_15
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