Under International Financial Reporting Standards,two companies with identical operating results may not report identical net incomes.

Question

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Under International Financial Reporting Standards (IFRS), companies may use different accounting policies and estimates which can result in different net income even if their operating results are identical. Additionally, one company may have exceptional items (such as gains or losses on the sale of assets) that the other company does not have, further impacting their net income.

Under International Financial Reporting Standards,two Companies with Identical Operating Results