Prospectus re Admission to the Official List - Heritage Oil

k) InvestmentsThe Group classifies its investments in the following categories: financial assets at fair valuethrough the income statement and available for sale financial assets. The classification dependson the purpose for which the investments were acquired. Management determines theclassification of its investments at initial recognition. During the period covered by these financialstatements the Group did not have any investments classified as ‘loans and receivables’ or ‘held tomaturity investments’.Financial assets at fair value through the income statementFinancial assets held for trading are carried at fair value with changes in fair value recognised inthe income statement. A financial asset is classified in this category if acquired principally for thepurpose of selling in the short term. Derivatives are classified as held for trading unless they aredesignated as hedges.Gains or losses arising from changes in the fair value of the ‘financial assets at fair value throughthe income statement’ category are presented in the income statement within ‘Unrealised gains/(losses) on other financial assets’ in the period in which they arise.Available-for-sale financial assetsAvailable-for-sale financial assets, comprising principally marketable equity securities, arenon-derivatives that are either designated in this category or not classified. They are included innon-current assets unless management intends to dispose of the investment within 12 months ofthe balance sheet date.Changes in the fair value of monetary and non-monetary securities classified as available-for-sale(other than impairment losses and foreign exchange gains and losses which are recognised in theincome statement) are recognised in equity. Upon sale of a security classified asavailable-for-sale, the cumulative gain or loss previously recognised in equity is recognised in theincome statement.The Group assesses at each balance sheet date whether there is objective evidence that afinancial asset or a group of financial assets is impaired. Measurement is assessed by reference tothe fair value of the financial asset or group of financial assets.l) Non-current assets held for sale(i) Assets held for saleNon-current assets (or disposal groups) are classified as assets held for sale and stated at thelower of their carrying amount and fair value less costs to sell if their carrying amount will berecovered principally through a sale transaction rather than through continuing use.Non-current assets (including those that are part of a disposal group) are not depreciated oramortised while they are classified as held for sale. Interest and other expenses attributable to theliabilities of a disposal group classified as held for sale continue to be recognised.Non-current assets classified as held for sale and the assets of a disposal group classified as assetsheld for sale are presented separately, as current assets, from the other assets in the balancesheet. The liabilities of a disposal group classified as held for sale are presented separately, ascurrent liabilities, from other liabilities in the balance sheet.(ii) Discontinued operationsA discontinued operation is a component of the Group that has been disposed of or is classifiedas held for sale and represents a separate major line of business or geographical area ofoperations, or is part of a single coordinated plan to dispose of such a line of business or area ofoperations, or is a subsidiary acquired exclusively with a view to resale. The earnings fromdiscontinued operations are presented separately on the face of the income statement.m) Trade and other payablesThese amounts represent liabilities for goods and services provided to the Group prior to the endof the financial period which are unpaid.185