The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its financial statements, is available at the company’s website.

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 2015 and 2014. How did the ratio change from 2014 to 2015, and what does this suggest about the company’s receivables?