Financial report / Explanations and comments on the Balance Sheet / 14. Accounts receivable and prepayments
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Accounts receivable and prepayments

2012 2011
Trade accounts receivable 630.4 524.7
Prepayments to suppliers 365.1 330.1
Prepayments for aircrafts 233.7 269.7
VAT and other taxes recoverable 276.3 231.4
Income tax prepaid 68.8 46.5
Deferred customs duties related to aircraft operating leases 36.7 33.6
Other receivables 119.0 121.2
Accounts receivable and prepayments, gross 1,730.0 1,557.2
Impairment allowance for bad and doubtful accounts (107.8) (89.8)
1,622.2 1,467.4

Deferred customs duties of USD 36.7 million (31 December 2011: USD 33.6 million) relate to the current portion of customs duties incurred on importation of aircraft under operating leases. These customs duties are expensed in the consolidated statement of income over the term of the operating lease. The non-current portion of the deferred customs duties is disclosed in Note 20.

As at 31 December 2012 sufficient impairment allowance has been made against accounts receivable and prepayments.

Income before taxation for financial reporting purposes is reconciled to taxation as follows:

Impairment allowance
As at 1 January 2011 36.3
Increase in impairment allowance for bad and doubtful accounts 23.1
Additions of subsidiaries 30.3
Disposed subsidiaries 7.3
Foreign currency translation (7.2)
As at 31 December 2011 89.8
Increase in impairment allowance for bad and doubtful accounts 12.3
Foreign currency translation allowance 5.7
As at 31 December 2012 107.8
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