Amounts recognised in balance sheet
Accounting principles Associated companies include all companies over which the Group has considerable influence but no control. Significant influence is usually based on a shareholding conferring 20–50 per cent of the voting rights. A joint venture is a joint arrangement in which the parties that have joint control of the arrangement have rights to its net assets. Investments in associates and joint ventures are accounted for using the equity method and are initially recognized at cost. The Group’s shares in associated companies and joint ventures also include the goodwill measured at the time of acquisition, less any impairment. The Group’s share of the profits or losses of associated compa- nies and joint ventures is recognised in the income statement as a separate line item above the operating result in case of associate company Metsä Fibre and below the operating result in case of other associate companies. Correspondingly, the Group’s share of other comprehensive income in associated companies and joint ventures is recognised in its items of other comprehensive income. A proportion corresponding to the Group’s shareholding is eliminated from unrealised profits between the Group and its associate companies and joint ventures. Unrealised losses arising from impairment are not eliminated. When necessary, the accounting principles applied by associated companies and joint ventures have been adjusted to comply with the Group’s principles.
EUR million
2022 614.2 614.2
2021
Associate companies
479.0 479.0
Amounts recognised in balance sheet total
The carrying amount of associated companies at 31 December 2022 includes goodwill of EUR 45.2 million (45.2). None of the associate com- panies or joint ventures are listed companies. Transactions with associate companies and joint ventures are detailed in Note 7.3.
Financial information summary of essential associated companies
According to management’s view, the only essential associated company is Metsä Fibre Group, which produces chemical pulp and sawn timber. Metsä Board owns 24.9 per cent of Metsä Fibre. Metsä Board’s parent company, Metsäliitto Cooperative, owns 50.1 per cent, and Itochu Corporation from Japan owns 25.0 per cent. Metsä Fibre has operations primarily in Finland, and its production capacity is approximately 3.2 million tonnes of chemical pulp. In Addition Metsä Fibre has five sawmills in Finland and Metsä Svir sawmill in Russia of which operations has been closed in 2022.
Summarised financial information for Metsä Fibre
Metsä Fibre Group
EUR million
2022
2021
Sales
3,070.7
2,628.1
Result for the period
664.7 125.1 789.8
472.4 -15.4 457.0
Other comprehensive income
Investments in associate companies and joint ventures
Total comprehensive income for the period
EUR million
2022 479.0
2021
Dividend received
58.8
Value 1 Jan
369.0
Share of results from associated companies and joint ventures Share of result from Metsä Fibre Share of results from other associated companies and joint ventures
Non-current assets
2,976.9
1,966.9
Current assets
835.6 781.0 739.6
865.8 469.1 624.7
163.1
114.4
Non-current liabilities
0.0
0.0
Current liabilities
Net assets
2,291.8
1,738.9
Dividends received
-58.8
Decreases
-0.5
Share of other comprehensive income from associated companies and joint ventures Fair value reserve
Reconciliation of financial information for Metsä Fibre to the value recognised in consolidated balance sheet
25.4
-4.4
Translation differences and other changes in equity Investments in associated companies and joint ventures 31 Dec
5.6
0.6
EUR million
2022 570.7
2021
614.2
479.0
Group's share of net assets
433.0
Goodwill
45.2
45.2
Other purchase price allocations at acquisition
4.6
5.1
Amounts recognised in income statement
Other adjustments
-6.5
-4.5
Carrying value of associated company in consolidated balance sheet
614.0
478.8
EUR million
2022
2021 114.4
Associate companies
163.1
Joint ventures
0.0
Metsä Fibre has been consolidated according to equity method based on its consolidated financial statements prepared under IFRS.
Amounts recognised in income statement total
163.1
114.4
137
Consolidated financial statements | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022
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