Nestle Group, a multinational food products firm based in Switzerland, recently issued its financial statements. The auditor's

Question:

Nestle´ 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 financial statements for the year ended 31 December 2012 comply with Swiss law and the Company's Articles of Incorporation. In the notes to its financial statements, Nestle's states that its financial reports are prepared using IFRS standards. One of Nestle'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?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...