Emission allowances The Group has received emission allowances in accordance with the European Union Emissions Trading System. Allowances are treated as intangible assets and are measured at acquisition cost. The acqui- sition cost of emission allowances received without consideration is zero. Emission allowances are used simultaneously with the carbon dioxide emissions generated during their validity period. Earnings from emission allowances sold are recognised in other operating income. If the emission allowances received without consideration are
not sufficient to cover the amount of the actual emissions, the Group purchases additional allowances from the market. The allowances purchased are recognised in intangible rights at the fair value on the acquisition date. The provision to fulfil the obligation to return the emission allowances is recognised at fair value on the closing date of the reporting period if the emission allowances received without consideration and purchased are not sufficient to cover the amount of the actual emissions.
Other intangible assets
Construction in progress
EUR million
Goodwill
Total
Acquisition cost, 1 Jan 2022
12.4
124.2
1.0
137.6
Translation differences
-0.5
-0.5
Increases
0.9 1.3
0.1
1.1 1.3
Acquired business
Decreases
-25.1
-67.8
-92.9
Transfers between asset categories Acquisition cost, 31 Dec 2022
1.0
-1.0
-12.8
59.2
0.1
46.6
Accumulated amortisation and impairment charges, 1 Jan 2022
-119.1
-119.1
Translation differences
0.4
0.4
Accumulated amortisation on decreases and transfers
25.0
66.4
91.4 -1.2
Amortisation for the period
-1.2
Impairment charges for the period Accumulated amortisation and impairment charges, 31 Dec 2022
25.0
-53.4
-28.5
Book value, 1 Jan 2022 Book value, 31 Dec 2022
12.4 12.2
5.1 5.8
1.0 0.1
18.5 18.1
Other intangible assets
Construction in progress
EUR million
Goodwill
Total 136.4
Acquisition cost, 1 Jan 2021
12.4
123.4
0.6
Translation differences
-0.1 0.5 -0.2
-0.1
Increases Decreases
1.0
1.5
-0.2
Transfers between asset categories
0.6
-0.6
Acquisition cost, 31 Dec 2021
12.4
124.2
1.0
137.6
Accumulated amortisation and impairment charges, 1 Jan 2021
-117.4
-117.4
Translation differences
0.1 0.2
0.1 0.2
Accumulated amortisation on decreases and transfers
Amortisation for the period
-2.0
-2.0
Accumulated amortisation and impairment charges, 31 Dec 2021
-119.1
-119.1
Book value, 1 Jan 2021 Book value, 31 Dec 2021
12.4 12.4
6.1 5.1
0.6 1.0
19.1 18.5
Other intangible assets include among other things computer software, patents and licenses. Metsä Board has not capitalised development expenditure. Acquired businesses in 2022 include the intangible assets of Hämeenkyrön Voima Oy. Further information is available in Note 7.2.
In 2022 the Group received 597 thousand tonnes of emission allowances free of charge (501). In addition the Group has sold 554 thousand tonnes to the market (310). At balance closing date the group had emission allowances of 1,000 thousand tonnes (1,011). At the end of 2021, it also had 47 thousand tonnes of free allowances for 2021, which had not yet been entered in the emissions trading register on 31 December 2021 due to a delay in the allocation. Emissions during the reporting period fell below the
amount of emission allowances received free of charge and consequently emissions during the year did not have an impact on income statement or balance sheet. In 2022, capital gains from the sale of emission allowances recognised in other operating income totalled EUR 29.0 million (21.3). On the balance sheet date, the fair market value of an emission right was EUR 80.76 per tonne (79.61) and total value of owned rights EUR 80.8 million (84.2).
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Consolidated financial statements | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022
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