FINANCIAL STATEMENTS 3Consolidated financial statements as of December 31, 2017 5.7 Trade accounts and notes receivable Accounting policies Trade and other receivable Trade receivables are recognized and measured at invoice face value minus accruals for non-recoverable amounts. Trade accounts include the effect of spreading lease incentives (stepped rents and rent-free periods) granted to tenants. All receivables have a maturity of less than one year, except stepped rents and rent-free periods which are spread over the fixed term of the lease. In €m 12/31/2017 12/31/2016 Trade receivables 182.3 200.3 Stepped rents and rent-free periods of leases 31.9 24.3 Gross value 214.1 224.6 Provisions on bad debts -69.6 -72.1 NET VALUE 144.5 152.6 5.8 Other receivables 12/31/2017 12/31/2016 In €m Total Less than one year More than one year Total Tax receivables 137.5 137.5 180.4 Corporate income tax 54.9 54.9 76.0 VAT 63.4 63.4 95.5 Other tax receivable 19.1 19.1 8.9 Other receivables 209.1 168.6 40.5 220.7 Service charges due 11.1 11.1 1.6 Down payments to suppliers 57.4 57.1 0.2 57.8 Prepaid expenses 39.6 12.3 27.3 49.1 Funds from principals 83.3 83.3 85.2 Other 17.8 4.8 13.0 27.0 TOTAL 346.6 306.1 40.5 401.1 The VAT item includes outstanding refunds from local tax authorities Funds managed by Klépierre Management on behalf of its principals in respect of recent acquisitions or construction projects in progress. stand at €83.3 million as of December 31, 2017 compared to Upfront payments on building leases or emphyteutic rights are €85.2 million as of December 31, 2016. The management accounts of amortized over the lifetime of the lease and recognized under prepaid the principals are recognized under “Other liabilities” (see note 5.14) expenses, totaling €27.3 million. for the same amount. 5.9 Cash and cash equivalents In €m 12/31/2017 12/31/2016 Cash equivalents 3.9 7.1 Treasury and certificates of deposit 0.1 1.0 Money market investments 3.8 6.1 Cash 560.6 571.7 Gross cash and cash equivalents 564.5 578.8 Bank overdrafts -130.0 -110.9 NET CASH AND CASH EQUIVALENTS 434.5 467.9 Cash equivalents are composed of French UCITS-type monetary funds for €3.8 million and Italian treasury bills for €0.1 million. 92 KLÉPIERRE 2017 REGISTRATION DOCUMENT