BillerudKorsnäs has made a valuation of approximately 36 000 hectares of forest assets, of which approximately 18,000 hectares are productive forests, in which the biological assets are valued according to IAS41. At the same time, the company has chosen to change the accounting method for valuing forest land assets from the acquisition value to the revaluation model based on the fair value, mainly based on transaction prices for forest properties in comparable areas. If you’re also planning to implement some changes in your business accounting processes, you may seek the services of companies like https://www.fourlane.com/quickbooks-consulting/.
Most of the forests are located in mountain areas in Jämtland and Dalarna, where the share of productive forests is relatively low. About 2,000 hectares, of which 1,000 are productive, are located near the Group’s production facilities in Sweden.
This fair value significantly exceeds the previously recognized book value, by SEK 280 million. The value change related to biological assets of SEK 132 million will be recognized in the income statement and as an item affecting comparability in the 2020 second quarter results. The value change related to forest land of SEK 148 million will be recognized in Other Comprehensive Income.
BillerudKorsnäs expects to own another 15 400 hectares of forest assets as a result of the transactions with Bergvik Skog Öst AB during 2019, of which approximately 5 500 hectares are productive forest land, when the cadastral processes for these properties are finalized. These forest assets will be revalued according to the Group´s accounting principles, at that time.
Packaging South Asia — authentic, impactful and influential
An English-language packaging industry B2B platform in print and web, Packaging South Asia is in its 19th year of publication. We do not make any claims about being the best or the most widely read. However, if you are interested in targeting the Indian and South Asian markets to sell equipment, technology, software, and consumables, we can help.
To improve your marketing and grow sales, talk to us. Our research and consulting company IppStar [www.ippstar.org] can assess your potential and addressable markets in light of the competition. We can discuss marketing, communication, and sales strategies for market entry and growth.
Suppliers and service providers with a strategy and budget for targeted marketing can discuss using our hybrid print, web, video, and social media channels to create brand recognition linked to market relevance. Our platform and channels are differentiated by hands-on practice and an understanding of business and financials. Our team, including some of the best technical writers, is ready to meet you and your customers for content.
India and South Asia’s fast-growing packaging industry is continuously expanding capacities with efficiency and appropriate innovative technologies. Get our 2025 media kit and recalibrate your role in this dynamic market. Enhance your visibility and relevance to existing markets and turn potential customers into conversations. Ask for a sample copy of our monthly or two weekly packaging eZines.