Avocet Mining PLC Prospectus December 2011

c105718pu050 Proof 5: 7.12.11_13:41 B/L Revision:
Upon exercise of share options, the proceeds received, net of any directly attributable transaction
costs, up to the nominal value of the shares issued are reallocated to share capital with any excess
being recorded in share premium.
Non-current assets and liabilities classified as held for sale and discontinued operations
A discontinued operation is a component of the entity that either has been disposed of, or is
classified as held for sale, and: represents a separate major line of business or geographical area of
operations; is part of a single co-ordinated plan to dispose of a separate major line of business or
geographical area of operations; or is a subsidiary acquired exclusively with a view to resale.
The results from discontinued operations, including re-classification of prior year results, are presented
separately in the income statement.
The disclosures for discontinued operations in all periods relate to all operations that have been
discontinued by the reporting date for the latest period presented.
When the Group intends to sell a non-current asset or a group of assets (a disposal group), and if
sale within 12 months is judged to be highly probable, the assets of the disposal group are classified
as held for sale and presented separately in the statement of financial position. Liabilities are classified
as held for sale and presented as such in the statement of financial position if they are directly
associated with a disposal group.
Assets classified as held for sale are measured at the lower of their carrying amounts immediately
prior to their classification as held for sale and their fair value less costs to sell. However, some held
for sale assets such as financial assets or deferred tax assets, continue to be measured in accordance
with the Group’s accounting policy for those assets. No assets classified as held for sale are subject to
depreciation or amortisation subsequent to their classification as held for sale.
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