X Inc. and Y Inc. are virtually identical companies with identical cost structures and very similar business practices operating in the same lines of business. X Inc. is based in Canada while Y Inc. is based in Japan. The following were the condensed Income Statements for both companies for the year last year before both adopted IFRS. For the sake of simplicity, Y Inc.'s results have been translated into Canadian Dollars. Given the information provided, what are some possible causes for the differing results of these companies?

Question

X Inc. and Y Inc. are virtually identical companies with identical cost structures and very similar business practices operating in the same lines of business. X Inc. is based in Canada while Y Inc. is based in Japan. The following were the condensed Income Statements for both companies for the year last year before both adopted IFRS. For the sake of simplicity, Y Inc.'s results have been translated into Canadian Dollars.  Given the information provided, what are some possible causes for the differing results of these companies?

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The Answer of X Inc. and Y Inc. are virtually identical companies with identical cost structures and very similar business practices operating in the same lines of business. X Inc. is based in Canada while Y Inc. is based in Japan. The following were the condensed Income Statements for both companies for the year last year before both adopted IFRS. For the sake of simplicity, Y Inc.'s results have been translated into Canadian Dollars.  Given the information provided, what are some possible causes for the differing results of these companies?

X Inc and Y Inc