SAP and Oracle difference Essay Example | Topics and Well Written Essays - 500 words

SAP and Oracle difference - Essay Example This paper discusses the potential differences between Oracle and SAP though analysis of their prime features, usage and functionality. Integration into user’s model: Oracle develops such products that have the capacity to be integrated with any kind of model from any vendor. This enables the vendors to develop the best system through a combination of Oracle products and their own models. One potential drawback of SAP ERP systems in comparison to Oracle is that the customers of SAP vendors are compelled to alter their corporate culture as per the working of SAP software. Scalability: The enterprise system offered by Oracle can easily account for over 1000 users at one time unlike the SAP ERP system can accommodate between 25 and 1000 users (Muhammadiev). This scalability is the result of huge granularity found in the modules of SAP. The scalability of Oracle is larger than that of SAP. Suitability: The suitability of SAP or Oracle also varies with the abundance of resources in a company. A company that has limited resources and time should prefer SAP products over Oracle. Oracle suits more to companies that have distinguished values because the competitive advantage that offers helps in the development of a unique system.

Financial statement presentation and disclosures Essay

Financial statement presentation and disclosures - Essay Example The financial deals and agreements will have a positive material effect on the company. They will be not presented in the balance sheet because they do not affect the borrowing capacity and these activities hide a certain amount of liability. Variable-Interest Entities: It is a concept which is introduced in the US Financial Accounting Standards in FIN 46 which refers to the entity (investee) in which the investors holds a certain amount of controlling interests which is not based on majority of the voting rights. It is almost synonymous to the concept of the special purpose entity. It is subject to the consolidation of certain financial conditions related to the variable interests. It is the primary beneficiary of the 7E which is defined as the person with a company with a majority of variable interest (Madura, 2007). Non controlling Interest: Non controlling interest refers to the ownership stake in a corporation in which the required position gives the investor the chance to under stand the way the company operates. Majority of the positions held by the investors are deemed to be non controlling interests because their ownership stake is very much insignificant relative to the total outstanding shares. Disclosure: Off balance sheet transactions, Variable-Interest Entities, and Non controlling Interest Off balance sheet transactions: The Company engages in varied financial transactions which should comply with the US GAAP principles that are not recorded in the company financial statements. These financial transactions involve the varying degrees, credit, interest rate, elements of credit and liquidity risk. These transactions are used to manage the request of customers in the form of funding, letters of credit and loan commitments. Firstly, to know what are the elements in the off balance sheet transactions, critically analyze them and their arrangements. Secondly, to assess the likelihood of the occurrences of an unknown trend, commitment, demand and any eve nt or uncertainty that could affect the off balance sheet arrangement and thirdly, the assessment would be required to conclude about the management trend. This would help in assessment of the uncertainty of the variables and would also help in arrangement of the off balance sheet elements and variables. The following items are necessary for the disclosure of certain items like: The nature and the business purpose if the company’s off balance sheet arrangement for the variables (Groppelli & Nikbakht, 2006). The importance of the company’s off balance sheet arrangement of the variables with respect to the liquidity, capital resources, credit risk, market risk and the support of some benefits (Hall, 2007). The amount and nature of the interests retained, issues securities other form of indebtedness that is incurred by the company in connection with the arrangements The amount and nature of any amount of obligation or liabilities of the company that arise out of the arran gements that are likely to become material Any known event, demand , uncertainty that will result in the termination of or reduction of material benefits that the company has proposed Variable-Interest Entities The variable entity model does not apply because the enterprise is being evaluated or consolidated for the traditional operating entity. As per the Accounting Standards Codifications