Tyson Food

Tyson Foods, Inc., was founded in 1935 with headquarters in Springdale, Arkansas.   The company has grown to one of the world's largest processors and marketers of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500.   Tyson provides products and services to customers throughout the United States and more than 90 countries.   The company has approximately 117,000 Team Members employed at more than 400 facilities and offices in the United States and around the world.
Tyson must account for the revenues produced like all other companies.   The IASB and FASB provide rules that govern the reporting of information.   Reporting the company’s profits and losses requires agreement between the accounting team and auditors.   Different industries report measurement conventions in different ways.   Tyson’s recognition of revenue and expenses are fairly direct because the company receives payment when they deliver the product. Matching and cost recovery would tend to be high for Tyson because of the amount of inventory on hand.   The stable money unit deals with the value of the dollar and it has a great effect on revenue generated when working with different countries.
The cash basis of accounting records revenue when cash changes hands and not when the transaction is completed.   The cash basis system doesn’t provide an accurate picture of income and expenses.   For example a payment for a machine rental be due twice in the same month and would be recorded as such.   Looking at the expense statement would give the impression that the payment was made twice in one month and not made all in the other month.   The accrual basis is a better fit because 95% of all business transactions are completed on credit.   It gives a better picture of the financial state of the company.
Ratios, profit margins, asset utilization and financial leverage provide the outside world with a quick view of the company.   These reports are used...