Carrefour, a French retailer, publishes financial statements under IFRS, denominated in euros. Toyota, the Japanese automobile producer, publishes financial statements under U.S. GAAP, denominated in yen. Excerpts taken directly from their 2019 income statements are provided in the following table. Note that the items are in the order in which they appeared on the income statement.

INSTRUCTIONS:

a. Identify differences in the definitions of operations used by the companies.
b. Comment on possible reasons for these differences.
c. How might an analyst handle these differences?

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Carrefour (million euros): Operating income 1,060 Finance costs (interest expense) (214) Equity in net income of affiliates 2 Toyota (million yen): Equity in net income of affiliates 360,066 Operating income 2,467,545 Interest expense (27,586)