D2. Property, plant and equipment
AP Accounting principles
Property, plant and equipment
Property, plant and equipment is measured 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. 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 the 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 |
2019 |
2018 |
2017 |
|
2019 |
2018 |
2017 |
|
2019 |
2018 |
2017 |
|
2019 |
2018 |
2017 |
||
|
|||||||||||||||||
Accumulated costs |
24,855 |
23,255 |
21,158 |
|
4,403 |
4,276 |
4,014 |
|
85,802 |
80,511 |
73,111 |
|
3,716 |
4,970 |
4,678 |
||
Accumulated depreciation |
–10,986 |
–10,010 |
–8,800 |
|
–649 |
–599 |
–542 |
|
–52,516 |
–48,983 |
–43,710 |
|
–1 |
– |
–1 |
||
Accumulated impairment |
–258 |
–271 |
–295 |
|
–25 |
–51 |
–26 |
|
–1,261 |
–1,392 |
–1,073 |
|
–1 |
–33 |
–32 |
||
Total |
13,611 |
12,974 |
12,063 |
|
3,729 |
3,626 |
3,446 |
|
32,025 |
30,136 |
28,328 |
|
3,714 |
4,937 |
4,645 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Value, January 1 |
12,974 |
12,063 |
11,825 |
|
3,626 |
3,446 |
3,325 |
|
30,136 |
28,328 |
28,502 |
|
4,937 |
4,645 |
3,842 |
||
Investments |
208 |
102 |
607 |
|
34 |
22 |
22 |
|
1,808 |
1,601 |
1,394 |
|
3,629 |
4,950 |
4,170 |
||
Sales and disposals |
–37 |
–20 |
–17 |
|
–1 |
–46 |
–5 |
|
–89 |
–90 |
–78 |
|
–1 |
–18 |
–1 |
||
Company acquisitions |
– |
79 |
299 |
|
– |
71 |
64 |
|
– |
145 |
767 |
|
– |
86 |
221 |
||
Company divestments |
– |
– |
–14 |
|
– |
– |
–1 |
|
–81 |
– |
–16 |
|
–3 |
– |
– |
||
Reclassifications |
818 |
1,134 |
389 |
|
–4 |
87 |
113 |
|
4,045 |
3,714 |
2,779 |
|
–5,037 |
–4,895 |
–3,507 |
||
Depreciation1) |
–841 |
–793 |
–730 |
|
–44 |
–42 |
–47 |
|
–4,597 |
–4,291 |
–4,094 |
|
– |
– |
– |
||
Impairment |
–6 |
–23 |
–65 |
|
–2 |
–30 |
–11 |
|
–144 |
–372 |
–178 |
|
– |
–3 |
– |
||
Reversal of impairment |
70 |
– |
– |
|
22 |
– |
– |
|
27 |
– |
– |
|
– |
– |
– |
||
Translation differences |
425 |
432 |
–231 |
|
98 |
118 |
–14 |
|
920 |
1,101 |
–748 |
|
189 |
172 |
–80 |
||
Value, December 31 |
13,611 |
12,974 |
12,063 |
|
3,729 |
3,626 |
3,446 |
|
32,025 |
30,136 |
28,328 |
|
3,714 |
4,937 |
4,645 |
||
SEKm |
2019 |
2018 |
2017 |
||
|
|||||
Accumulated costs |
118,776 |
113,012 |
102,961 |
||
Accumulated depreciation |
–64,152 |
–59,592 |
–53,053 |
||
Accumulated impairment |
–1,545 |
–1,747 |
–1,426 |
||
Total |
53,079 |
51,673 |
48,482 |
||
|
|
|
|
||
Value, January 1 |
51,673 |
48,482 |
47,494 |
||
Investments |
5,679 |
6,675 |
6,193 |
||
Sales and disposals |
–128 |
–174 |
–101 |
||
Company acquisitions |
– |
381 |
1,351 |
||
Company divestments |
–84 |
– |
–31 |
||
Reclassifications |
–178 |
40 |
–226 |
||
Depreciation1) |
–5,482 |
–5,126 |
–4,871 |
||
Impairment |
–152 |
–428 |
–254 |
||
Reversal of impairment |
119 |
– |
– |
||
Translation differences |
1,632 |
1,823 |
–1,073 |
||
Value, December 31 |
53,079 |
51,673 |
48,482 |
||
TG2:1 Right-of-use assets, net value |
3,821 |
– |
– |
||
BS Value, December 31 including right-of-use assets |
56,900 |
51,673 |
48,482 |
||
Impairment losses for the year totaling SEK 152m are mainly related to restructuring measures in Consumer Tissue and Personal Care. Reversal of impairments totaling SEK 119m is mainly related to previous impairments at production facilities in Baby Care, India, and Consumer Tissue, France.
During the period, interest was capitalized in machinery and equipment in an amount of SEK 39m (24; 35) and in construction in progress in an amount of SEK 1m (0; –). The average interest rate used was 4% (5; 5).
Contract obligations relating to the acquisition of property, plant and equipment amounted to SEK 3,836m (3,563) at year end.