Cision Announces Adjustments to Prior Year Retained Earnings

Cision Announces Adjustments to Prior Year Retained Earnings

STOCKHOLM--(BUSINESS WIRE)-- Regulatory News:

In the second quarter interim report 2013, Cision (STO:CSN) 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 future.

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 comparison purposes.

Table included in attached PDF.

http://mb.cision.com/Main/329/9469062/162081.pdf

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.

Cision is a leading provider of cloud-based PR software, services and tools for the marketing and public relations industry. Marketing and PR professionals use our products to help manage all aspects of their brands - from identifying key media and influencers to connecting with audiences; monitoring traditional and social media; and analyzing outcomes. Journalists, bloggers, and other influencers use Cision's tools to research story ideas, track trends, and maintain their public profiles. Cision is present in Europe, North America and Asia, is quoted on the Nordic Exchange with revenue of approx. SEK 1.0 billion in 2012. For more information, visit www.cision.com.

This information was brought to you by Cision http://news.cision.com

Cision AB (publ)
Peter Granat, President and CEO
Tosh Bruce-Morgan, Group CFO
Phone: +46 (0)8 507 410 11
e-mail: investorrelations@cision.com

KEYWORDS: Europe Sweden

INDUSTRY KEYWORDS:

The article Cision Announces Adjustments to Prior Year Retained Earnings originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.