Under FRS 102, how should discontinued operations be presented in the profit and loss statement?

Discontinued operations must be presented as a separate line item in the profit and loss statement according to FRS 102. This is important because it provides clear visibility into the financial performance of the ongoing business operations, distinguishing them from operations that no longer contribute to future earnings. By isolating discontinued operations, stakeholders—such as investors, creditors, and management—can more easily assess the profitability and relevance of the continuing operations, allowing for a more accurate evaluation of the entity's financial health and future prospects. This separate presentation enhances clarity and transparency in financial reporting, ensuring that users of the financial statements can understand which segments of the business are still contributing to profitability and how much has been impacted by discontinued activities.