Hyder et al 1999 one can therefore speak about a

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change in the growing stock value caused by changes in stumpage prices (cf. Hyder et al. 1999). One can therefore speak about a dualistic value change in property that consists of a dynamic portion based on the physical change, and an economic cycle portion based on stumpage prices (cf. Niskanen et al. 2002). The annual change in the value of the growing stock will be included even in the profit and loss statement (IAS 41.26). The annual turnover of forestry can fluctuate dramatically between fiscal years because of timber sales. However, the change in the value of the growing stock attributable to stumpage price fluctuations may be the dominant part of the net profit, especially, if timber sales income has been small or no wood has been sold during the year in question. This price volatility alone can cause significant changes also in the value of the growing stock between fiscal years. All these annual changes affect the profitability of forestry from net profit to different ROI (return on investment) and other ratio analysis figures. 2.3 Calculation solutions The MARTTI book-keeping system assembles the input information and results in an XML file of the forest holding (see Latukka et al. 2005). The XML file will be sent via the Internet to the MELA calculation using the NettiMELA Internet service. Technically there are three runs for each forest holding and year (for abbreviations, see Redsven et al. 2004): (i) The updating (returns SMT variables) (ii) The simulation and optimisation (returns MPU variables) and (iii) The bare land value calculation (the log of the simulation run). Actually, the applied three runs could be replaced by two runs in which (i) and (ii) are merged and the results are printed in one run. The output will be produced for the 2, 8 and 10 year calculation periods, where the results of the three first periods will be fetched and stored in the MARTTI result tables . The returned result information for closing of the books by forest stand totals will be produced by forest holding in a sum table of variables such as area, allowable cut, NPV of the growing stock for interest rates 1–5% (MELA MSD variables 801–805) and bare land values for 1–5% interest rates (the log of the simulation). The allowable cut is separated from the rest of the growing stock (MELA MSD variable 500 in gross income euro/year). The accounts and MELA variables are:
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Working Papers of the Finnish Forest Research Institute 93 Balance sheet: MELA variable: Bare land value Bare land value period 0 The change in the value of the bare land (Revaluation surplus (IAS 16.39) Growing stock The NPV of the growing stock in period 0 – the allowable cut in period 1 The allowable cut The allowable cut in period 1 Profit and loss account: The change in value of the growing stock The price correction of the growing stock The opening accounts of the balance sheet will be found in the sum table for the previous year and the normal balance sheet continuity will be maintained between years. Changes in the forest
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  • Spring '17
  • Jane Smith
  • Balance Sheet, The Land, ........., International Financial Reporting Standards, Finnish Forest Research Institute

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