Stora Enso is changing its forest assets valuation method
Stora Enso has decided to start using a valuation method for its forest assets in the Nordics based on market transaction data and change the accounting policy from the fourth quarter of 2020 onwards. Preliminary estimations, based on transactions in those areas in which Stora Enso has forest land, indicate that the value of the Group’s forest assets, including leased land, will be between EUR 6.5 billion and EUR 7.0 billion, compared with the end of Q3/2020 book value of EUR 5.4 billion. The review of the fair value will be completed during the fourth quarter and will take into account also the latest transaction prices. Deferred tax liability will be recognised based on the difference between the forest assets’ book value and their value for tax purposes in the same manner as currently.