Cision announces adjustments to prior year retained earnings
| Source:Cision AB
In the second quarter interim report 2013, Cision announced that its Board of
Directors had instructed a thorough review of the US organization’s balance
sheet as previous deficiencies in reconciliation procedures had been identified.
The outcome of the review is that adjustments to the group’s prior year retained
earnings of SEK 60 million are required, of which SEK 48 million net of a
positive tax impact relates to incorrect revenue recognition over the previous
five years. As a part of the review Cision also assessed the carrying value of
its fixed assets. Cision found that entries dating back more than five years
also needed to be adjusted by SEK 12 million to reflect the appropriate carrying
value for fixed assets. The adjustments identified do not affect 2013 trading
results and do not have any cash effect.
The required adjustments were the result of having relatively complex systems
and ineffective controls in connection with the handling of deferred revenue in
the Cision US business. Cision has calculated and verified the corrections to
deferred revenue and associated control accounts and has identified the
necessary adjustments to control procedures to ensure correct handling in
During the past twelve months significant changes to the Cision US finance
leadership team have taken place including a new CFO, a new Controller, a new
Finance Manager, and a re-organisation of the receivables team. In addition a
Financial Planning Analyst was hired and Cision appointed new auditors, KPMG, in
April 2013. These changes have all enabled improvements to financial control
procedures including more robust reconciliation procedures which have been
subjected to sampling and testing by KPMG. The Cision Group finance function has
also made changes to follow-up routines to improve the detection and explanation
of unusual variances.
The attached table below shows the effect of the adjustments to the Cision Group
balance sheets for 2011 and 2012. Cision’s third quarter interim statement will
be published on October 23, 2013 when further details will be provided for
Table included in attached PDF.
For further information, please contact:
Peter Granat, President and CEO,
Tosh Bruce-Morgan, Group CFO
Phone: +46 (0)8 507 410 11, e-mail: email@example.com
Cision AB (publ)
P.O. Box 24194
SE-104 51 Stockholm, Sweden
Corp Identity No. SE556027951401
Telephone: 46 (0)8 507 410 00
The information provided herein is such that Cision AB (publ) is obligated to
disclose pursuant to the Swedish Securities Markets Act (SFS 2007:528) and/or
the Swedish Financial Instruments Trading Act (SFS 1991:980). The information
was submitted for publication at 08:30 AM CEST on September 19, 2013.
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