Tyson Foods Case Study

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Tyson foods is a producer of prepared food both in the U.S. and internationally. It would be beneficial for Tyson to consider preparations for financial reporting under International standards due to its international footprint. Preparation is prudent regardless of the U.S. securities and exchange commision (SEC) failure to make a final determination of when and if U.S. public companies will be required to transition from Generally Accepted Accounting Practices (GAAP) to the International Financial Accounting Standards (IFRS). This lack of guidance from the SEC may either force a company to provide two sets of financial reporting to investors (both GAAP and IFRS) or limit appropriate reporting in regards to global operations by using only…show more content…
Under GAAP it is important to follow SEC regulations and report material components of the balance sheet with enough information to clearly present assets and liabilities. IFRS does not require a specific format of the balance sheet, but does require minimum items to be presented. Many large, multi-national companies within the U.S. are already reporting financial statements in a way that would require only minor adjustments under the IFRS. Two examples are Monsanto and Syngenta. Both of these companies are similar in size and business sectors, yet Syngenta compiles financial documents in accordance with IFRS. Monsanto, on the other hand only files statements in accordance with GAAP using SEC form 10K. Tyson’s financial statements will look similar to what is being reported now with adjustments made for some asset…show more content…
Two entries for brands and trademarks with one having an indefinite life and the other amortizable over 20 years. Customer relations and non-compete agreements are also listed. Both of these entries are amortizable (non-compete agreements for only 1 year). IFRS allows for a revaluation of intangible assets other than goodwill. Both entries for brands and trademarks would need accounting changes. Tyson has no intangible assets that fall under software and can retain amortization it currently uses, however accounting adjustments would be needed when and if revaluation has been
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