Web Travel Group (ASX:WEB) expects the adoption of a new accounting standard to increase its earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half of fiscal 2025 by AU$2.5 million, according to a Wednesday filing with the Australian bourse.
The company's new accounting approach will account for the differences between amounts accrued and amounts invoiced by and paid to suppliers, the filing said.
As a result of the change, the company also expects a reduction of AU$1.5 million to the fiscal 2024 EBITDA and of AU$32 million to retained earnings as of Mar. 31, 2023, as well as a AU$32 million increase to the trade and other payables balance as of Sep. 30.
The change in accounting standards is not expected to materially impact the company's earnings and financial position, the filing said. The adjustments will be included in the company's fiscal first-half report.
The company shares fell past 4% in recent Thursday trade.
Price (AUD): $4.31, Change: $-0.19, Percent Change: -4.22%
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