Financial overviewNote 1 - Accounting principles

The consolidated accounts are prepared in accordance with the International Financial Reporting Standards (IFRS), including the International Accounting Standards (IAS) and interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), which apply as of December 31, 2007 and have been approved by the EU Commission for application within the EU. The Swedish Financial Accounting Standards Council's recommendation RR30, Complementary accounting rules for groups, is applied. All of the above rules have been applied consistently to the comparative year presented in the annual report.

New standards and interpretations that entered into force in 2007 have not had any effect on the Group's financial position.

As of December 31, 2007 the following standards and interpretations have been published but not yet entered into force: IFRS 3, IFRS 8, IFRIC 11, IFRIC 12, IFRIC 13, IFRIC 14, IAS 1 and IAS 23. None of the standards or interpretations has been applied in the preparation of the consolidated accounts for 2007. Under the conditions that exist at the time of preparation of this annual report, the Group's financial position will not be affected when the above-mentioned standards and interpretations enter into force.

Reporting in the Parent Company

The Parent Company has prepared its annual report according to the Annual Accounts Act and early application of the Swedish Financial Accounting Standards Council's recommendation RFR 2.1. This means that the Parent Company, in the annual report for the legal entity, will apply all IFRS standards and pronouncements approved by the EU as far as possible within the framework of the Annual Accounts Act and taking into account the connection between accounting and taxation. The Parent Company's accounting principles are the same as the Group's and are contained in this note. In cases where the Parent Company's accounting principles deviate from the Group, this is described in each section.

Consolidated accounts

The consolidated accounts comprise the Parent Company, Cision AB, and the companies in which Cision AB at year-end directly or indirectly held more than 50 percent of the voting rights or otherwise had a decisive influence. All Group companies are 100 percent owned. The Group does not comprise any associated companies.

The consolidated financial statements have been prepared in accordance with IAS 27 and IFRS 3 on consolidated accounts and by applying the purchase accounting method. Subsidiaries are included in the consolidated accounts from the day when decisive influence is transferred to the Group and excluded when the decisive influence ends.

The cost of an acquisition consists of the fair value of the assets offered as compensation, equity instruments in issue and liabilities that arise or have been assumed as of the transfer date, plus costs directly attributable to the acquisition. The surplus comprised of the difference between the acquisition value and fair value of the Group's share of identifiable, acquired net assets is recognized as goodwill. If the acquisition value is less than the fair value of the acquired subsidiary's net assets, the difference is recognized directly through profit or loss.

All intra-Group transactions, i.e., revenue, expenses, receivables, liabilities, unrealized gains and Group contributions, have been eliminated. Where necessary the subsidiaries' accounting principles have been adjusted to ensure consistent accounting within the Group. The consolidated income statement includes companies acquired during the year as of the date possession is taken. Companies divested during the year are excluded as of the date of sale.

Revenue recognition

Operations comprise four service areas: Plan, Connect, Monitor and Analyze. A large part of the Group's clients receive services through the CisionPoint software solution in the form of a subscription, which is paid in advance and recognized in revenue evenly throughout the subscription period. The subscription can contain one or more services from the four service areas. Since the services are not included in the CisionPoint subscription or are purchased separately, revenue is recognized as follows:

Revenue from Plan services consists of subscription fees for electronic use of databases and revenue from the sale of catalogs. Subscription fees, which are paid by clients in advance, are recognized in revenue evenly throughout the subscription period, while revenue from catalog sales is reported when delivery has been made to the client.

Revenue from Contact services consists of fixed startup fees, variable fees for each distribution and subscription fees. Distribution fees are recognized in revenue in connection with delivery. Startup fees are recognized in revenue when the service begins. Subscription fees paid in advance are accrued evenly throughout the subscription period.

Revenue from monitoring services in the Monitor area comes from both fixed and variable fees. Fixed fees consist of subscription fees and fees for software solutions and are recognized in revenue in the period to which they pertain. If payment is made in advance, the fee is recognized in revenue evenly throughout the subscription period. Fees for the supply of services with variable pricing are recognized in revenue when the service is delivered to the client. One example of such revenue is the fee for press clippings.

Analysis and evaluation services are recognized in revenue upon delivery to the client. Revenue from software-based analysis services, i.e., dashboards, in the Analyze area consists of fees for monthly subscriptions recognized in the month to which the subscription pertains. All sales are reported net after value-added tax, discounts, returns and shipping. Intra-Group revenue is eliminated.

Segment reporting

Geographical areas are the primary basis of distribution for the Group's operations. The Group is divided into three geographical areas: North America, Rest of Europe and Nordic & Baltic. The primary segments include the Group's total range of services. Service areas are the secondary basis of distribution. The Group is divided into four service areas: Plan, Contact, Monitor and Analyze. This distribution agrees with the distribution that the company uses internally and takes into account the risks and opportunities in the operations. There have been no internal sales between service areas.

Revenue, expenses, assets and liabilities attributable to each segment include amounts that can be attributed to the segment directly or allocated to it in a reasonable and reliable manner. Items that cannot be attributed to a segment directly or allocated to the segment in a reasonable and reliable manner as well as intra-Group transactions are reported separately. The Group's internal pricing between and within segments is based on commercial terms. The business segments are consolidated according to the same accounting principles as for the Group in its entirety.

Translation of foreign currency

The Parent Company's functional currency and reporting currency is Swedish kronor (SEK). Group companies report in their functional currencies, which for Cision is the official national currency in the country where their operations are conducted. For Group companies whose operations comprise the financial ownership of the Group's operating companies, the functional and reporting currency serves as the operating company's functional currency.

Assets and liabilities of foreign subsidiaries are translated at balance sheet date exchange rates, while income statement items are translated at average exchange rates for the year. Items included in equity are translated at historical exchange rates. Exchange rate differences associated with the translation of balance sheet items are applied directly against shareholders' equity and thus do not affect profit for the year.

Net investment in foreign operations

Translation differences that arise in connection with the translation of a foreign net investment when consolidated, and of borrowing identified as hedges of such investments, are attributed to shareholders' equity. When a foreign operation is divested, such exchange rate differences are recognized through profit or loss as a part of the capital gain/loss.

Transactions and assets and liabilities in foreign currency

Transactions denominated in foreign currency are reported in the functional currency at the exchange rate in force on the transaction date. Receivables and liabilities denominated in foreign currency are translated on the balance sheet date to the functional currency in force at the time. Exchange rate gains and losses on financial receivables and liabilities are reported among financial items. Operations-related exchange rate gains and losses are reported in operating profit. When it comes to the Parent Company, however, the book value of receivables and liabilities in foreign currency is not affected when an effective currency hedge is in place.

Goodwill

Cision is a service company that acquires companies to introduce its business model, which contributes to faster growth and higher margins and to creating value by restructuring and refining the acquired operations. The companies that Cision acquires largely lack identifiable intangible assets, due to which a large part of the purchase price in an acquisition of operations is allocated to goodwill.

Goodwill is not written off but instead tested annually for impairment. Impairment tests are conducted on all cash-generating units regardless of whether or not there is an indication of impairment. An established model to determine impairment is used for the entire Group. The model tests goodwill for impairment at the same level for cash generating-units as Cision uses for follow-ups, i.e., by country. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less selling costs and its value in use.

In the Parent Company, goodwill is amortized in accordance with RFR 2.1. Amortization is booked according to plan over 20 years, since the asset is expected to generate profits during this period.

Other intangible fixed assets

Other intangible fixed assets consist of capitalized development expenses and acquired assets where a portion of the purchase price has been separated from goodwill and allocated primarily to trademarks, client relations, and in-house developed IT systems and databases.

Other intangible fixed assets are recognized in the balance sheet at acquisition value less accumulated amortization. The amortization schedule is three to five years based on the economic life of the asset. If there is an indication of diminished value, an estimate is made of the asset's carrying amount. In cases where the carrying amount exceeds the asset's estimated recoverable amount, the asset is written down to its recoverable amount. Amortization of capitalized research and development costs begins on the date the asset is put to use. Costs for repairs and maintenance are expensed.

The value of intangible fixed assets with unlimited periods of use and development expenditures that have not yet been put to use are tested annually for impairment or when events or changes in conditions indicate that the value may not be recoverable. Cision has no other intangible assets with unlimited periods of use.

Research and development

Expenditures for development operations are normally expensed in the periods in which they arise. Only when it can be established with certainty that research and development expenditures will lead to future economic benefits are they capitalized as an intangible asset. Capitalized costs primarily consist of staff costs for employees fully engaged in the development of the intangible assets and costs for competence brought in from outside the company.

Tangible fixed assets

Tangible fixed assets are reported at acquisition value less accumulated depreciation based on the economic lives of the assets. Equipment is depreciated over three to ten years and office buildings over 50 years. Land is not depreciated. The residual values and periods of use of the assets are tested on each balance sheet date and adjusted when needed. An asset's carrying amount is written down to its recoverable amount if the asset's carrying amount exceeds its estimated recoverable amount. Gains and losses on the sale of tangible fixed assets are determined through a comparison between the sales proceeds and carrying amount and are recognized through profit or loss.

Leasing

Leases in which the economic risks and benefits of ownership of the leased asset are essentially transferred from the lessor to Cision are classified as finance leases. Assets leased financially are recognized as tangible fixed assets and depreciated in accordance with similar assets. The period of use does not exceed the length of the lease, however, provided it has not been established with reasonable certainty at the time the lease was signed that ownership rights will revert at the conclusion of the lease period. At the inception of the lease period, the asset and liability are recognized at the lower of fair value and the present value of the minimum lease payments. Future lease payments are reported as a liability and lease payments during the year reduce the reported debt, after deducting interest. Finance leases refer to office company cars.
Leases that are not classified as finance are termed operating leases, and lease payments are recognized directly through profit or loss on a straight-line basis over the lease period. Operating leases largely refer to office premises and office equipment.

Liquid assets

Liquid assets include cash and short-term investments with a maturity of less than three months from acquisition and bank balances excluding the unutilized portion of the Group's bank overdraft facilities. In the balance sheet, unutilized bank overdraft facilities are recognized among current liabilities.

Financial instruments

The financial instruments recognized in the balance sheet include, on the asset side, liquid assets, accounts receivable, loans receivable and derivatives. Liabilities include accounts payable and loan liabilities.

Purchases and sales of financial instruments are recognized on the trade date, i.e., the date on which the Group commits to buy or sell the asset. Accounts receivable are recognized in the balance sheet when an invoice is sent. Correspondingly, supplier invoices are recognized when received.

Financial instruments are recognized at inception at acquisition value, corresponding to the instrument's fair value plus transaction costs, which applies to all financial assets except those attributed to the category fair value through profit or loss. Reporting is subsequently based on how they are classified. A financial asset is derecognized from the balance sheet when the rights in the agreement have been realized, have expired or when the company loses control over them.

A financial liability is removed when the obligation is discharged or otherwise extinguished. The fair value of quoted investments is based on current bid prices on the balance sheet date. If the market for a financial instrument is not active (and for unlisted securities), fair value is determined using valuation techniques suitable for the transaction.

On each balance sheet date, an assessment is made whether there are objective indications that a financial asset or group of financial assets is impaired.

Definition of financial instruments

In accordance with IAS 39, financial assets and financial liabilities are defined in four different categories and are then recognized and carried according to the principles that apply to each category.

Instruments are classified based on the purpose of the holding. Management determines the classification of the instruments when they are initially reported and reassesses its decision on each reporting date.

Financial instruments at fair value through profit or loss

This category has two sub-categories: financial instruments held for trading and those designated by management at inception to the category at fair value through profit or loss. A financial asset or liability is classified as held for trading if it:

• Is acquired principally for the purpose of selling or repurchasing in the short term;
• Is included in a portfolio with identifiable financial instruments which are managed together and for which there is a proven pattern of recent short-term gains; or
• Includes derivatives classified as held for trading, unless they qualify for hedge accounting.

Assets in this category are carried at fair value with changes in value recognized through profit or loss.

As of the balance sheet date, the Group has no derivatives at fair value, since all derivatives are hedging instruments in hedging relationships. During the year the Group had a number of forward exchange contracts and two interest rate caps at fair value.

Liquid assets and short-term investments are classified as assets at fair value with changes in their value recognized through profit or loss. Liquid assets include cash and bank balances. The Group has no short-term investments as of the balance sheet date.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. They are included in current assets, except for items with maturities longer than 12 months after the balance sheet date, which are classified as fixed assets. The following balance sheet items are classified as accounts receivable and loans receivable: accounts receivable, other short-term receivables and other long-term receivables.

The large part of the Group's financial assets refers to accounts receivable attributable to services rendered. These receivables are recognized at acquisition value and classified as current assets. Due to their short maturity, the time value of money prior to payment is not taken into account. The Group has no intent of trading any receivables that may arise. A provision for the decrease in the value of accounts receivable is allocated when there is objective proof of anticipated client losses. The allocated amount is recognized through profit or loss.

Held-to-maturity financial instruments

Held-to-maturity financial instruments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group intends to hold to maturity. During the fiscal year the Group did not have any financial instruments classified as held to maturity.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivatives that are either designated to this category or not classified in any of the other categories. They are included in non-current assets unless the intent is to dispose of the investment within 12 months. During the fiscal year the Group did not have any financial assets classified as available-for-sale financial assets.

Other financial liabilities

Financial liabilities are recognized at inception at accrued value, net after transaction costs. Borrowing is subsequently carried at amortized cost. Any difference between the amount received (net after acquisition costs) and the repayment amount is recognized through profit or loss over the term of the loan using the effective interest rate method. This is calculated so that a constant effective interest rate is obtained over the term of the loan.

Convertible debentures consist of two parts, a loan and an option. The loan amount per convertible corresponds to the nominal amount. The debt portion carries a market interest rate according to the effective interest rate method, which is recognized through profit or loss. See also note 22.

Trade accounts payable and similar current liabilities, where maturities are short and there is no agreed interest rate, are recognized at nominal amounts. Long-term liabilities have an expected maturity of longer than 12 months, while current liabilities have an expected maturity of less than 12 months.As of the balance sheet date the Group has the following financial liabilities recognized at amortized cost: accounts payable, overdraft facilities, syndicated loan facilities and convertible loans.

Derivatives and hedge accounting

Derivatives are recognized in the balance sheet on the contract date and carried at fair value both at inception and in subsequent valuations. Changes in the value of derivatives are recognized through profit or loss based on the purpose of the holding. If the derivative is used for hedge accounting to the extent it is effective, changes in value are recognized on the same line in the income statement as the hedged item. Value increases and decreases in the derivative are recognized, even if hedge accounting is not applied, as income/expenses in operating profit or within net financial items, based on the purpose of the derivative and whether its use is related to an operating or financial item.

The Group documents the relationship between the hedge instrument and the hedged item, the strategy for undertaking the hedging measures and the objectives of its risk management. Assessments are documented at the hedge's inception and periodically over time to ensure that the derivatives used in hedging transactions are effective in evening out changes in fair value or changes in cash flow for hedged items.

The Group identifies derivatives as either a hedge of the fair value of an identified asset/liability or a binding commitment (fair value hedge), a hedge of a highly probable forecast transaction (cash flow hedge) or a hedge of the net investment in foreign operations. If the conditions for hedge accounting are no longer met, the derivative is recognized at fair value and the change in value is recognized through profit or loss.

As of year-end the Group had interest rate swaps that are used to hedge a portion of its interest expenses for the syndicated loan facility and for which the Group applies hedge accounting.

Fair value hedges

Changes in the fair value of a derivative identified as a fair value hedge and which meets the conditions for hedge accounting are recognized through profit or loss together with the change in the value of the asset/liability that gave rise to the hedged risk. During the fiscal year the Group did not have any derivatives classified as fair value hedges.

Cash flow hedges

The effective portion of changes in the fair value of a derivative identified as a cash flow hedge and which meets the conditions for hedge accounting is recognized in equity. Any gain or loss related to the ineffective portion of the hedge is recognized immediately through profit or loss. The Group's interest rate swaps are accounted as hedges according to the principles for cash flow hedges.

Hedges of net investments

Hedges of net investments in foreign operations are reported similarly to cash flow hedges. The gain or loss on the hedging instrument determined to be an effective hedge is recognized directly in equity. Any gain or loss related to the ineffective portion is recognized immediately through profit or loss. During the fiscal year the Group did not have any derivatives classified as hedges of net investments.

Net investment in foreign operations

Exchange rate differences that arise in the translation of monetary items that are part of Parent Company's net investment in foreign operations are recognized in accordance with RFR 2.1 in the fair value reserve directly in shareholders' equity.

Liabilities that constitute hedging instruments, Parent Company

The Parent Company applies RFR 2.1, which means it can continue to apply the rules in BFN R7 Valuation of receivables and liabilities in foreign currency. According to BFN R7, an effective currency hedge arises in the Parent Company when shares in a foreign subsidiary have been financed with loans in local currency. For an effective currency hedge to exist, its intent must have been in evidence on the transaction date. The reason for the exemption is that the tax rules on hedges are based on BFN R7 and in many cases require that reporting is prepared correspondingly.

Shareholders' equity

Transactions directly attributable to the issuance of new shares or options are recognized net after tax in equity as a deduction from the issue proceeds.

Taxes

The year's tax expense refers to tax payable on taxable profit for the year as well as changes in deferred tax. Taxes are estimated in accordance with the tax regulations applicable in each country. Deferred tax is reported according to the balance sheet method, i.e., on all temporary differences between the book value and fiscal value of assets and liabilities. Temporary differences primarily arise through tax amortization of goodwill and tax loss carryforwards. Deferred taxes are carried at the tax rate in force on the balance sheet date. Tax loss carryforwards are recognized to the extent it is probable that deductions can be applied against future surpluses.

Provisions

Provisions are recognized when the Group has or may have an obligation as a result of a past event and it is probable that payments will be required to settle the obligation and a reliable estimate can be made of the amount that has to be paid. The provisions made are for future restructuring programs and deferred tax. No provisions have been made for future operating losses.

Contingent liabilities

A contingent liability is recognized when there is a potential obligation attributable to a past event and whose existence is confirmed only by one or more uncertain future events or when there is an obligation not recognized as a liability or provision since it is not clear that an outflow of resources will occur. When contingent liability is recognized it is a provision. Contingent liabilities are only disclosures.

Employee benefits

With the exception of Swedish Group companies, the Group's occupational pension plans are defined contribution plans. Premiums paid for defined contribution pension plans are expensed in the period they arise. The Group's Swedish companies follow Alecta's ITP plan, which is a multi-employer defined benefit plan. Due to a lack of information from Alecta, the plan cannot be reported as defined benefit, however, and is therefore reported as if it were a defined contribution plan. The expense for the Alecta's ITP plan amounted to SEK 8,656 thousand (9,312) during the year. As of the balance sheet date, Alecta has a solvency margin of 152 percent (143).

For the employee stock option program, social security expenses are reported on the appreciation in the options' value as an operating expense.

Share-related compensation

Share-related compensation, e.g., conditional stock options, which deviates from market rate compensation and has been allocated to employees in the form of incentive programs, is recognized as a staff cost through profit or loss. Shareholders' equity is not affected, since an amount corresponding to the cost is recognized at the same time as an increase in equity. The cost is estimated based on the fair value of the benefit at the time of its allocation and is divided over the vesting period. The value is calculated using the Black & Scholes model (B&S). Only share-related compensation allocated after November 7, 2002 that has not been vested as of January 1, 2005 is recognized according to the above description. This share-related compensation expired in 2007.

Social security expenses attributable to share-related compensation to employees as compensation for services rendered are expensed in the periods in which the services were rendered. The provision for social security expenses is based on the fair value of the options on the reporting date.

The incentive program through the issuance of convertible debentures consists of two parts, a loan and an option. The loan amount per convertible corresponds to the nominal amount. The option portion is recognized through equity and has no effect on the income statement. (Since the option valuation according to B&S does not have to agree with the valuation of the liability, the company may incur an expense.)

The valuation is based partly on the value of the interest-bearing debenture loan without the conversion right and partly on the value of the conversion right according to the B&S, taking into account that the liquidity in the convertibles presumably will be limited since there are no plans at present for a listing. According to the calculations used in the valuation, the subscription price corresponds to the convertibles' estimated market value.

Since the convertibles were issued on market terms, and since the holding of convertibles will not be subject to any restrictions on the right of disposal or other special terms or limitations, Management is of the opinion that the convertibles will not entail any future costs in the form of social security expenses. Consequently, there is no need for hedging, either.

In the accounts, the interest expense for the convertibles will correspond to the market interest rate on the issue date, which may deviate from the interest rate that applies to the convertibles. The convertible debentures were subscribed in 2007; see the note 7 and note 22.

Anticipated dividend

Anticipated dividends from subsidiaries are recognized in cases where the Parent Company alone has the right to decide on the size of the dividend and the Parent Company has decided on the size of the dividend before it has published its financial reports.

Statement of cash flows

The statement of cash flows has been prepared in accordance with the indirect method.

Critical estimates and assumptions

The preparation of financial reports requires Management and the Board to make estimates and assumptions that impact assets and liabilities as well as the carrying amount of contingent liabilities on the balance sheet date. Recognized revenue and expenses are impacted as well. Estimates and assumptions are evaluated periodically based on historical experience and other factors, including expectations of future events that seem reasonable under current circumstances. Actual outcomes may deviate from estimates.

Management has discussed with the audit committee the development, choice and disclosure of the Group's critical accounting principles and estimates as well as the application of these principles and estimates. The estimates and assumptions that carry a significant risk of material adjustments in the carrying amount of assets and liabilities during the upcoming fiscal year are discussed below.

Impairment testing of goodwill

Several assumptions with regard to future conditions and estimates of parameters have been made in the calculation of the recoverable amount of cash-generating units when determining goodwill impairment. A description can be found in note 15. As indicated in the description in this note, changes in the conditions for these assumptions and estimates in 2008 could have a significant impact on the value of goodwill.

Recovery of the value of development expenditures

Expenditures for research and development are capitalized when it is probable that they will lead to future economic benefits. The large part of capitalized development expenditures refers to technical solutions for digital supply of information, software and interactive client applications. Their period of use is determined based on each application's commercial lifecycle and is normally 3-5 years. Changes in clients' behavior, competitors' offerings and technological developments may affect the assessment of the value of undepreciated assets.

Assumption regarding ongoing tax dispute

The County Administrative Court has upheld the Swedish tax authorities' earlier decision to increase Cision AB's taxable income for the year 2000 by approximately SEK 440 million, which would result in a tax charge of SEK 173 million, including a tax surcharge but excluding interest of approximately SEK 30 million as of the balance sheet date, December 31, 2007. The decision concerns the sale of Sifo Research & Consulting.

Cision has appealed the decision to the Administrative Court of Appeal. Oral proceedings in the Court of Appeal will be held on March 11, 2008, with a ruling expected in the second quarter of 2008. The company is of the opinion that the tax authorities' decision will not result in any increased tax cost and, until further notice, will not allocate any provisions connected to the County Administrative Court's decision.

Valuation of tax loss carryforwards

On December 31, 2007 Cision AB had tax loss carryforwards amounting to SEK 165 million (111). At a tax rate of 28 percent, the tax loss carryforwards have a value of SEK 46 million (31), of which SEK 33 million (21) has been recognized in the consolidated balance sheet. Based on the company's plans and forecasts, tax loss carryforwards have been capitalized in an amount corresponding to what is estimated could be utilized within the foreseeable future, which is defined as a five-year period from the closing date.

On December 31, 2007 Observer Group AB had tax loss carryforwards amounting to SEK 78 million (78). Due to the current tax investigation, there is uncertainty whether the tax loss carryforwards will be utilized. As a result, Management and the Board have decided not to carry the tax loss carryforwards in the consolidated balance sheet.

On December 31, 2007 Cision Norge AS had tax loss carryforwards of NOK 70 million (68). The company reported negative results for the fiscal years 2004 to 2007. Although the company's business plans and forecasts for 2008 indicate a positive trend in revenue and profit, Management and the Board believe there is uncertainty when the company will report positive results, due to which they have decided not to carry the tax loss carryforwards in the consolidated balance sheet.

For fiscal year 2007 Cision Danmark A/S reported a loss of DKK 4.9 million. Although the company's business plans and forecasts for 2008 indicate a positive trend in revenue and profit, Management and the Board believe there is uncertainty when the company will report positive results, due to which they have decided not to carry the tax loss carryforwards in the consolidated balance sheet.

On December 31, 2007 Media Intelligence (UK) Ltd had tax loss carryforwards of GBP 3.8 million (3.6). Due to limitations on the utilization of tax loss carryforwards, Management and the Board have made a calculation and decided not to carry them in the consolidated balance sheet.