D2. Property, plant and equipment
AP ACCOUNTING PRINCIPLES
Property, plant and equipment
Property, plant and equipment is recognized at cost less accumulated depreciation and any impairment. In cases where an investment in foreign currency has been recognized using hedge accounting, the gain/loss from the hedge is recognized as part of the acquisition cost. The cost of properties and production facilities included in major projects includes costs for running-in and start-up. Borrowing costs are included in the cost of investments exceeding SEK 250m that take more than 12 months to complete. Expenditure for repairs and maintenance is expensed directly in profit or loss.
Depreciation and impairment
Land is not subject to depreciation. Buildings, machinery and equipment are depreciated on a straight-line basis over the useful lives of the assets. If, at accounting year-end, there is an indication that property, plant and equipment has declined in value, impairment testing is carried out.
|
|
Number of years |
|
Pulp and paper mills, sawmills |
10–25 |
|
Converting machines, other machinery |
7–18 |
|
Tools |
3–10 |
|
Vehicles |
4–5 |
|
Buildings |
15–50 |
|
Energy plants |
15–30 |
|
Computers |
3–5 |
|
Office equipment |
5–10 |
|
Harbors, railways |
20–30 |
|
Land improvements, forest roads |
10–20 |
|
|
Buildings |
|
Land and land improvements |
|
Machinery and equipment |
|
Construction in progress |
||||||||||
|
SEKm |
2016 |
2015 |
2014 |
|
2016 |
2015 |
2014 |
|
2016 |
2015 |
2014 |
|
2016 |
2015 |
2014 |
||
|
|||||||||||||||||
|
Accumulated costs |
24,980 |
22,802 |
22,007 |
|
7,701 |
7,437 |
7,422 |
|
96,247 |
86,804 |
84,367 |
|
7,125 |
4,023 |
4,368 |
||
|
Accumulated depreciation |
–10,725 |
–9,653 |
–9,023 |
|
–2,006 |
–1,826 |
–1,679 |
|
–58,321 |
–52,403 |
–50,009 |
|
–24 |
– |
– |
||
|
Accumulated impairment |
–485 |
–407 |
–222 |
|
–68 |
–70 |
–32 |
|
–2,202 |
–2,173 |
–847 |
|
–38 |
–2 |
–7 |
||
|
Total |
13,770 |
12,742 |
12,762 |
|
5,627 |
5,541 |
5,711 |
|
35,724 |
32,228 |
33,511 |
|
7,063 |
4,021 |
4,361 |
||
|
Value, January 1 |
12,742 |
12,762 |
11,458 |
|
5,541 |
5,711 |
5,420 |
|
32,228 |
33,511 |
32,493 |
|
4,021 |
4,361 |
3,406 |
||
|
Investments |
315 |
505 |
389 |
|
211 |
154 |
163 |
|
2,841 |
2,337 |
2,342 |
|
6,431 |
4,337 |
2,713 |
||
|
Sales and disposals |
–34 |
–2 |
–13 |
|
–10 |
–7 |
–35 |
|
–117 |
–134 |
–56 |
|
– |
–23 |
–8 |
||
|
Company acquisitions |
511 |
– |
1 |
|
28 |
– |
1 |
|
2,289 |
– |
52 |
|
68 |
– |
2 |
||
|
Company divestments |
– |
– |
– |
|
10 |
– |
– |
|
– |
–48 |
– |
|
– |
– |
– |
||
|
Reclassifications |
686 |
926 |
796 |
|
–53 |
28 |
77 |
|
2,626 |
3,361 |
1,143 |
|
–3,536 |
–4,516 |
–1,711 |
||
|
Depreciation 1) |
–811 |
–873 |
–723 |
|
–148 |
–143 |
–136 |
|
–4,878 |
–4,652 |
–4,369 |
|
–24 |
– |
– |
||
|
Impairment |
–159 |
–197 |
–9 |
|
–102 |
–48 |
–3 |
|
–127 |
–1,394 |
–50 |
|
–32 |
– |
– |
||
|
Translation differences |
520 |
–379 |
863 |
|
150 |
–154 |
224 |
|
862 |
–753 |
1,956 |
|
135 |
–138 |
–41 |
||
|
Value, December 31 |
13,770 |
12,742 |
12,762 |
|
5,627 |
5,541 |
5,711 |
|
35,724 |
32,228 |
33,511 |
|
7,063 |
4,021 |
4,361 |
||
|
SEKm |
2016 |
2015 |
2014 |
||
|
|||||
|
Accumulated costs |
136,053 |
121,066 |
118,164 |
||
|
Accumulated depreciation |
–71,076 |
–63,882 |
–60,711 |
||
|
Accumulated impairment |
–2,793 |
–2,652 |
–1,108 |
||
|
Total |
62,184 |
54,532 |
56,345 |
||
|
Value, January 1 |
54,532 |
56,345 |
52,777 |
||
|
Investments |
9,798 |
7,333 |
5,607 |
||
|
Sales and disposals |
–161 |
–166 |
–112 |
||
|
Company acquisitions |
2,896 |
– |
56 |
||
|
Company divestments |
10 |
–48 |
– |
||
|
Reclassifications |
–277 |
–201 |
305 |
||
|
Depreciation 1) |
–5,861 |
–5,668 |
–5,228 |
||
|
Impairment |
–420 |
–1,639 |
–62 |
||
|
Translation differences |
1,667 |
–1,424 |
3,002 |
||
|
BS Value, December 31 |
62,184 |
54,532 |
56,345 |
||
Impairment losses for the year totaling SEK –420m are mainly attributable to the restructuring of the tissue operations in France and Spain and the closure of the hygiene operation in India and diaper operation in Mexico.
During the period, interest was capitalized in machinery and equipment in an amount of SEK 19m (47; 29) and in construction in progress in an amount of SEK 41m (3; 6). The average interest rate used was 10% (7; 2).