Asiatravel says $5.2m discrepancy in accounts due to restructuring exercise

SINGAPORE - A discrepancy of $5.2 million between its unaudited and audited financial statements for fiscal 2017 was due to the company's restructuring exercise, travel agency Asiatravel announced late on Monday night (June 25).

Out of the adjustment of $5.2 million loss before income tax, $2.6 million loss is attributable to owners of the company, Asiatravel said.

The bulk of the difference came from the $4.5 million related to the allowance for doubtful debt of two 50 per cent-owned subsidiaries involved in the offline travel business, as the group seeks to exit the sector.

The remainder was due to the amortisation of $900,000 of intangible assets related to one of the 50 per cent-owned subsidiaries, the impairment of $800,000 in intangible assets after an assessment of the goodwill arising from business combinations, and a $1 million reversal due from the over accrued cost of sales following reconciliation with the group's customers.

Asiatravel's shares last traded on June 8, closing at 2.9 cents apiece.