SAPPI LIMITED

SAPPI
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS (Continued)
for the year ended September 2010
10. PLANTATIONS (Continued)
Changes in estimate prices, the discount rate, costs to sell and, volume and growth assumptions
applied in the valuation of immature timber may impact the calculated fair value as tabled below:
2010 2009 2008
(US$ million)
Market price changes
1% increase in market prices ........................ 2 12 17
1% decrease in market prices ........................
Discount rate (for immature timber)
(2) (12) (17)
1% increase in rate ................................ (5) (3) (4)
1% decrease in rate ...............................
Volume assumption
5 3 4
1% increase in estimate of volume ..................... 9 6 6
1% decrease in estimate of volume ....................
Costs to sell
(9) (6) (6)
1% increase in costs to sell .......................... (1) (9) (10)
1% decrease in costs to sell .........................
Growth assumptions
1 9 10
1% increase in rate of growth ........................ 2 1 1
1% decrease in rate of growth ........................ (2) (1) (1)
11. DEFERRED TAX
2010 2009
Assets Liabilities Assets Liabilities
(US$ million)
Other liabilities, accruals and prepayments .............. (100) 8 (111) 8
Inventory ....................................... 5 (3) 5 (4)
USA alternative minimum taxation credit carry forward ...... 14 — 11 —
Tax loss carry forward ............................. 313 63 360 69
Property, plant and equipment ....................... (113) (302) (141) (292)
Plantations ..................................... (26) (160) (20) (145)
Other non-current assets ........................... 27 — 26 —
Other non-current liabilities .......................... (67) 8 (74) 9
53 (386) 56 (355)
Negative asset and liability positions
These balances reflect the impact of tax assets and liabilities arising in different tax jurisdictions,
which cannot be netted against tax assets and liabilities arising in other tax jurisdictions.
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