BillerudKorsnäs makes a revaluation of forest land

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

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BillerudKorsnäs
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. 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.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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