A discontinued operation is a part of an entity that has either been disposed of or is classified as “ held for sale”, and

a. Represents a separate major line of business or geographical area of operations,

b. Is part of a single coordinated plan to dispose of separate major line of business  or geographical area of operations, or

c. A subsidiary acquired exclusively with view to resale.

Disclosure required for discontinued operation:

1. The net profit after tax of the discontinued operations need to be disclosed separately,
2. It is require to have detailed information disclosure of revenue, expenses, pre-tax profit and tax is required either in the notes or on the face of the income statement.
3. If this information is disclosed on the face of the income statement, they should be shown separately from information related to continued operations.