BillerudKorsnäs makes a revaluation of forest land

Changes the accounting method for valuing forest land assets from the acquisition value to the revaluation model

BillerudKorsnäs reevaluates forest land

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.

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.

As you join us today from India and elsewhere, we have a favour to ask. Through these times of ambiguity and challenge, the packaging industry in India and in most parts of the world has been fortunate. We are now read in more than 90 countries as our coverage widens and increases in impact. Our traffic as per analytics more than doubled in 2020 and many readers chose to support us financially even when advertising fell to pieces.

As we come out of the pandemic in the next few months, we hope to again expand our geography and evolve our high-impact reporting and authoritative and technical information, with some of the best correspondents in the industry. If there were ever a time to support us, it is now. You can power Packaging South Asia’s balanced industry journalism and help to sustain us by subscribing.

Subscribe Now


Please enter your comment!
Please enter your name here