XML 47 R19.htm IDEA: XBRL DOCUMENT
v3.23.1

BIOLOGICAL ASSETS | 12 Months Ended
--- | ---
Dec. 31, 2022
BIOLOGICAL ASSETS. |
BIOLOGICAL ASSETS |
13. | BIOLOGICAL ASSETS
The roll-forward of biological assets is as set forth below: ​
​ | ​ | ​ | ​ | ​
​ | ​ | December 31, | ​ | December 31,
​ | ​ | 2022 | ​ | 2021
Opening balance | ​ | 12,248,732 | ​ | 11,161,210
Additions | ​ | 4,957,380 | ​ | 3,807,608
Depletions | ​ | (3,665,057) | ​ | (3,189,726)
Transfers | ​ | ​ | ​ | 23,471
Gain on fair value adjustments | ​ | 1,199,759 | ​ | 763,091
Disposals | ​ | (82,331) | ​ | (211,433)
Other write-offs | ​ | (26,297) | ​ | (105,489)
Closing balance | ​ | 14,632,186 | ​ | 12,248,732
​ The calculation of fair value of the biological assets falls under Level 3 in the hierarchy set forth in IFRS 13 — Measurement of Fair Value, due to the complexity and structure of the calculation. The assumptions such as the average annual growth (“IMA”), discount rate, and average gross selling price of eucalyptus, stand out as being the most sensitive, where increases or reductions in these assumptions could generate significant gains or losses in the measurement of fair value. The assumptions used in the measurement of the fair value of biological assets were as follow:
| i) | Average cycle of forest formation between 6 and 7 years;
| ii) | Effective area of forest from the 3rd year of planting;
| iii) | The IMA consists of the estimated volume of production of wood with bark in m3 per hectare, ascertained based on the genetic material used in each region, silvicultural practices and forest management, production potential, climate factors and soil conditions;
| iv) | The estimated average standard cost per hectare includes silvicultural and forest management expenses, applied to each year of formation of the biological cycle of the forests, plus the costs of land lease agreements and the opportunity cost of owning land;
| v) | The average gross selling prices of eucalyptus were based on specialized research on transactions carried out by the Company with independent third parties; and
| vi) | The discount rate used in cash flows is measured based on the capital structure and other economic assumptions of an independent market participant in the sale of standing wood (forests).
The table below discloses the measurement of the premises adopted: ​
​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, | ​ | December 31, | ​
​ |  | 2022 | ​ | 2021 | ​
Planted useful area (hectare) | ​ | 1,097,081 | ​ | 1,060,806 | ​
Mature assets | ​ | 134,752 | ​ | 138,739 | ​
Immature assets | ​ | 962,329 | ​ | 922,067 | ​
Average annual growth (IMA) – m3/hectare/year | ​ | 37.07 | ​ | 37.58 | ​
Average gross sale price of eucalyptus – R$/m3 | ​ | 90.16 | ​ | 76.38 | ​
Discount rate - % (post-tax) | ​ | 9.1 | % | 8.9 | %
​ The pricing model considers the net cash flows, after the deduction of taxes on profit at the applicable rates. The fair value adjustment justified by the combined variations of the indicators mentioned above resulted in a positive variation of R$1,199,759 recognized in other operating income (expenses), net (Note 30). ​
​ | ​ | ​ | ​ | ​
​ | ​ | December 31, |  | December 31,
​ |  | 2022 |  | 2021
Physical changes | ​ | (37,088) | ​ | 148,190
Price | ​ | 1,236,847 | ​ | 614,901
​ | ​ | 1,199,759 | ​ | 763,091
​ The Company manages the financial and climate risks related to its agricultural activities in a preventive manner. To reduce the risks arising from edaphoclimatic factors, the weather is monitored through meteorological stations and, in the event of pests and diseases, our Department of Forestry Research and Development, an area specialized in physiological and phytosanitary aspects, has procedures to diagnose and act rapidly against any occurrences and losses (Note 4.7). The Company has no biological assets pledged for the year ended December 31, 2022 and the year ended December 31, 2021.

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfDetailedInformationAboutBiologicalAssetsAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of detailed information about biological assets. [Refer: Biological assets] + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Name IAS -Number 41 -IssueDate 2022-03-24 -Paragraph 43 -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=41&code=ifrs-tx-2022-en-r&anchor=para_43&doctype=Standard -URIDate 2022-03-24 + Details
Name: | ifrs-full_DisclosureOfDetailedInformationAboutBiologicalAssetsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration