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 include running-in and start-up costs. Borrowing costs are included in the cost of investments exceeding SEK 250m that take more than 12 months to complete. Expenses for repairs and maintenance are 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 expected useful lives of the assets. If, at balance sheet date, 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 |
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 |
Land improvements |
10–20 |
|
Buildings |
|
Land and land improvements |
|
Machinery and equipment |
|
Construction in progress |
||||||||||
SEKm |
2017 |
2016 |
2015 |
|
2017 |
2016 |
2015 |
|
2017 |
2016 |
2015 |
|
2017 |
2016 |
2015 |
||
|
|||||||||||||||||
Accumulated costs |
21,158 |
20,253 |
18,293 |
|
4,014 |
3,887 |
3,917 |
|
73,111 |
71,071 |
62,420 |
|
4,678 |
3,901 |
2,774 |
||
Accumulated depreciation |
–8,800 |
–8,097 |
–7,059 |
|
–542 |
–498 |
–422 |
|
–43,710 |
–41,577 |
–36,235 |
|
–1 |
–24 |
– |
||
Accumulated impairment |
–295 |
–331 |
–255 |
|
–26 |
–64 |
–66 |
|
–1,073 |
–992 |
–965 |
|
–32 |
–35 |
– |
||
Total |
12,063 |
11,825 |
10,979 |
|
3,446 |
3,325 |
3,429 |
|
28,328 |
28,502 |
25,220 |
|
4,645 |
3,842 |
2,774 |
||
Value, January 1 |
11,825 |
10,979 |
10,895 |
|
3,325 |
3,429 |
3,628 |
|
28,502 |
25,220 |
25,555 |
|
3,842 |
2,774 |
3,521 |
||
Investments |
607 |
191 |
406 |
|
22 |
26 |
23 |
|
1,394 |
2,054 |
1,731 |
|
4,170 |
3,979 |
3,329 |
||
Sales and disposals |
–17 |
–12 |
–2 |
|
–5 |
–11 |
–2 |
|
–78 |
–107 |
–132 |
|
–1 |
– |
–22 |
||
Company acquisitions |
299 |
511 |
– |
|
64 |
27 |
– |
|
767 |
2,290 |
– |
|
221 |
68 |
– |
||
Company divestments |
–14 |
– |
– |
|
–1 |
10 |
– |
|
–16 |
– |
–48 |
|
– |
– |
– |
||
Reclassifications |
389 |
505 |
849 |
|
113 |
–161 |
24 |
|
2,779 |
2,297 |
2,842 |
|
–3,507 |
–3,066 |
–3,915 |
||
Depreciation1) |
–730 |
–707 |
–757 |
|
–47 |
–44 |
–45 |
|
–4,094 |
–3,989 |
–3,687 |
|
– |
–24 |
– |
||
Impairment |
–65 |
–159 |
–39 |
|
–11 |
–102 |
–45 |
|
–178 |
–127 |
–291 |
|
– |
–32 |
– |
||
Translation differences |
–231 |
517 |
–373 |
|
–14 |
151 |
–154 |
|
–748 |
864 |
–750 |
|
–80 |
143 |
–139 |
||
Value, December 31 |
12,063 |
11,825 |
10,979 |
|
3,446 |
3,325 |
3,429 |
|
28,328 |
28,502 |
25,220 |
|
4,645 |
3,842 |
2,774 |
||
SEKm |
2017 |
2016 |
2015 |
||
|
|||||
Accumulated costs |
102,961 |
99,112 |
87,404 |
||
Accumulated depreciation |
–53,053 |
–50,196 |
–43,716 |
||
Accumulated impairment |
–1,426 |
–1,422 |
–1,286 |
||
Total |
48,482 |
47,494 |
42,402 |
||
Value, January 1 |
47,494 |
42,402 |
43,599 |
||
Investments |
6,193 |
6,250 |
5,489 |
||
Sales and disposals |
–101 |
–130 |
–158 |
||
Company acquisitions |
1,351 |
2,896 |
– |
||
Company divestments |
–31 |
10 |
–48 |
||
Reclassifications |
–226 |
–425 |
–200 |
||
Depreciation1) |
–4,871 |
–4,764 |
–4,489 |
||
Impairment |
–254 |
–420 |
–375 |
||
Translation differences |
–1,073 |
1,675 |
–1,416 |
||
BS Value, December 31 |
48,482 |
47,494 |
42,402 |
||
Impairment losses for the year totaling SEK –254m mainly arose from the closure of a tissue production facility in the US and the close down of a tissue machine in the UK.
During the period, interest was capitalized in machinery and equipment in an amount of SEK 41m (19; 47) and in construction in progress in an amount of SEK 0m (31; –). The average interest rate used was 5% (10; 8).