Air FranceKLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AFs financial statements and disclosure notes for the year ended December 31, 2017, are available under the Finance link at the companys website.

Required

1. In note 4.11, AF describes how it values trade receivables. How does the approach used by AF compare to U.S. GAAP?

2. In note 25, AF reconciles the beginning and ending balances of its valuation allowances for trade accounts receivable. Prepare a T-account for the valuation allowance and include entries for the beginning and ending balances as well as any reconciling items that affected the account during 2017.

3. Examine note 27. 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?