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 a public company based in Canada and follows IFRS while Y Inc. is a private enterprise based in Canada and follows ASPE. The following were the condensed income statements for both companies for the last year before both adopted IFRS.

	X Inc.	Y Inc.
Sales:	$1,000,000	$2,000,000
Less:
Cost of Goods Sold	$500,000	$1,600,000
Gross Margin	$500,000	$400,000
Administrative Expenses	$200,000	$300,000
Net Income:	$300,000	$100,000

Given the information provided, what are some possible causes for the differing results of these companies?