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Zynga and Glu - Essay Example

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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. …
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"Zynga and Glu"

Zynga and Glu

The policies concerning the platiform 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 sell 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 game using their license only. Glu is concerned more with partnership in order to make sales and creation of games. Zynga does not work with partners in brining 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.

In the 2013 Form 10-K, Zynga include 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). In the 2013 Form 10-K as reviewed from the company’s audit committee, the financial reporting was effectively controlled internally. Read More
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