The financial statements of Louis Vuitton are presented in Appendix F. Instructions for accessing and using the company's complete annual report, including the notes to its financial statements, are also provided in Appendix F.
Instructions
Use the company's annual report to answer the following questions.
(a) What is the accounting policy related to accounting for trade accounts receivable?
(b) According to the notes to the financial statements, what accounted for the difference between gross trade accounts receivable and net accounts receivable?
(c) According to the notes to the financial statements, what was the major reason why the balance in receivables increased relative to the previous year?
(d) Using information in the notes to the financial statements, determine what percentage the provision for impairment of receivables was as a percentage of total trade receivables for 2013 and 2012. How did the ratio change from 2012 to 2013, and what does this suggest about the company's receivables?