Accounts receivable should be shown at their original value

Short-term accounts receivable in a
foreign currency due within one year are to be translated into euros at the year-
end rate. Long-term items are to be translated at the lower of the historical and
year-end rates. Specific provision must be made for anticipated bad debts.

As with provisions for loss in value of inventories, the tax authorities look carefully
at the provisions actually taken. Specific provisions must be justified
specifically; general provisions must reflect the past experience of the business
and even so will not be accepted without further explanation and investigation
if they exceed 1% of all amounts outstanding.

There is no deduction for the bad debt expense of a shareholder with an interest
of more than 25% in the debtor, unless a third party creditor would have
granted the debt or allowed it to remain outstanding in otherwise similar
circumstances.