Financial overviewNote 15 - Goodwill


Group, SEK in thousands		2007	2006
Acquisition values, opening balance		3,183,145	3,430,340
Purchases/acquisitions		264	12,661
Reclassifications		-	-1,124
Translation differences		-74,573	-258,732
Accumulated acquisition values, closing balance		3,108,836	3,183,145
Amortization values and write-downs, opening balance		-1,261,589	-541,464
Purchases/acquisitions		-	-
Sales/disposals		-	-
Translation differences		31,960	38,641
Write-downs		-	-758,766
Accumulated amortization and write-downs, closing balance		-1,229,629	-1,261,589
BOOK VALUE, CLOSING BALANCE		1,879,207	1,921,556

Write-downs by country, SEK in thousands		2007	2006
UK		-	-674,472
Ireland		-	-40,615
Norway		-	-43,582
Baltic countries		-	-107
Total		-	-758,776
The opening balance of depreciation, amortization and write-downs in 2007 includes goodwill write-downs of SEK 758,766 thousand in 2006. The write-downs in 2006 were necessitated by restructuring work and losses in the Norwegian and Irish operations as well as revised growth expectations in the UK.

Parent Company, SEK in thousands		2007	2006
Acquisition values, opening balance		12,000	12,000
Purchases/acquisitions		-	-
Sales/disposals		-	-
Accumulated acquisition values, closing balance		12,000	12,000
Amortization, opening balance		-5,550	-4,950
Purchases/acquisitions		-	-
Sales/disposals		-	-
Amortization for the year		-600	-600
Accumulated amortization, closing balance		-6,150	-5,550
BOOK VALUE, CLOSING BALANCE		5,850	6,450

Impairment tests for cash-generating units containing goodwill
Cision follows up its operations by country. In most cases there is only one operating subsidiary per country. In cases where there is more than one operating subsidiary in a country, the range of services is still so integrated that follow-ups are done for the country as a whole. Consequently, Cision has one cash-generating unit per country.
The following cash-generating units have recognized goodwill of such a scope that their aggregate goodwill amounts to at least 93 percent of the Group’s total reported goodwill.

SEK in thousands		2007	2006
UK		460,837	481,110
USA		927,156	984,948
Canada		287,103	257,816
Germany		73,112	69,844
		1,748,208	1,793,718
Other cash-generating units combined (9 countries 2007 and 2006)		130,999	127,838
		1,879,207	1,921,556
Goodwill is booked in local currency and gives rise to currency translation effects in the consolidated accounts. The change in goodwill during the fiscal year in the above units is indicated in the following table.

SEK in thousands	Additional goodwill	Write-downs	Translation effect
UK	-	-	-20,274
USA	264	-	-58,056
Canada	-	-	29,287
Germany	-	-	3,268
	264	-	-45,775
Other cash-generating units combined (9 countries 2007 and 2006)	-	-	3,162
	264	-	-42,613
Impairment tests for units containing goodwill are based on a calculation of value in use. This value is based on cash flow forecasts for the next ten years as well as a terminal period.
Tests are conducted by country in local currency.
The units’ cash flows are affected by commercial factors, including market growth, competitiveness, technological development, overall cost trends, investment levels and tied-up working capital. In the case of discounting, financial factors come into play, such as interest rates, borrowing costs, market risk, beta values and tax rates.
The assumptions made in the test reflect Management’s best assessment of the economic conditions that are expected to have an impact during the period of use. The first five years are based on current internal forecasts projected forward. For periods beyond five years, a gradually declining growth rate is applied down to 3.5 percent, which is applied for the terminal period.
Sensitivity analyses of commercial assumptions, to test for impairment, have been done for all cash-generating units.
The financial factors have been used to calculate the weighted average cost of capital (WACC) per country, which has then been used as the discounting factor. The discounting factor for the four largest cash-generating units varies between 7.50 percent and 8.18 percent.
Since assets affiliated with the head office cannot be divided among cash-generating units on a reasonable and consistent basis, these assets have not been tested separately for impairment. Instead, an assessment has been made whether the recognized value of these assets falls within the estimated value in use for the entire Group in a comparison with all reported assets in the Group.

Note 1-15 Note 16-29