Nestl Group, a multinational food products firm based in Switzerland, recently issued its financial statements. The auditors

Nestlé Group, a multinational food products firm based in Switzerland, recently issued its financial statements. The auditor’s opinion attached to the financial statements stated the following: “In our opinion, the Consolidated Accounts give a true and fair view of the financial position, the net profit and cash flows in accordance with International Financial Reporting Standards (IFRS) and comply with Swiss law.” Note that Nestlé’s financial reports are prepared using IFRS standards. One of Nestlé’s competitors is PepsiCo, which prepares financial reports following U.S. GAAP. Describe the necessary steps an analyst should consider to develop comparable accounting data when conducting a profitability and risk analysis of these two firms.