Air FranceKLM (AF), a French company, prepares its financial statements according to International Financial Reporting Standards. AFs

Question:

Air France–KLM (AF), a French company, prepares its financial statements according to International Financial Reporting Standards. AF’s annual report for the year ended March 31, 2011, which includes financial statements and disclosure notes, is provided with all new textbooks. This material also is included in AF’s “Registration

Document 2010–11,” dated June 15, 2011 and is available at www.airfranceklm.com.

Required:

1. In note 3.10.1, AF describes how it values trade receivables. How does the approach used by AF compare to U.S. GAAP? 2.

2. In note 24, AF reconciles the beginning and ending balances of its valuation allowance for trade accounts receivable. Prepare a T-account for the valuation allowance and include entries for the beginning and ending balances and any reconciling items that affected the account during 2011.

3. Examine note 26. Does AF have any bank overdrafts? If so, are the overdrafts shown in the balance sheet the same way they would be shown under U.S. GAAP?

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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...