Aviva 2013 Annual Report Download - page 125

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
123
Accounting policies continued
Treasury shares
Where the Company or its subsidiaries purchase the Company’s
share capital or obtain rights to purchase its share capital, the
consideration paid (including any attributable transaction costs
net of income taxes) is shown as a deduction from total
shareholders’ equity. The Group’s only such holding comprises
shares purchased by employee trusts to fund certain awards
under the equity compensation plans described in accounting
policy AB above. Gains and losses on sales of own shares are
charged or credited to the treasury share account in equity.
(AF) Fiduciary activities
Assets and income arising from fiduciary activities, together with
related undertakings to return such assets to customers, are
excluded from these financial statements where the Group has
no contractual rights in the assets and acts in a fiduciary
capacity such as nominee, trustee or agent.
(AG) Earnings per share
Basic earnings per share is calculated by dividing net income
available to ordinary shareholders by the weighted average
number of ordinary shares in issue during the year, excluding
the weighted average number of ordinary shares purchased by
the Group and held as Treasury shares.
Earnings per share has also been calculated on the adjusted
operating profit before impairment of goodwill and other
adjusting items, after tax, attributable to ordinary shareholders,
as the directors believe this figure provides a better indication
of operating performance. Details are given in note 15.
For the diluted earnings per share, the weighted average
number of ordinary shares in issue is adjusted to assume
conversion of all dilutive potential ordinary shares, such as
convertible debt and share options granted to employees.
Potential or contingent share issuances are treated as
dilutive when their conversion to shares would decrease net
(losses) earnings per share.
(AH) Operations held for sale
Assets and liabilities held for disposal as part of operations
which are held for sale are shown separately in the consolidated
statement of financial position. Operations held for sale are
recorded at the lower of their carrying amount and their fair
value less the estimated selling costs.