Chapter 4, Ex1

We know from the question that the overall result for the year ended 31 December, 2009 was a profit of $230 (2008 $160) and we know that, of these amounts, some was due to revenue from the discontinued activity, some costs of that same activity, some distribution costs and so on

The aggregate contribution of the discontinued activity to that total of $230 (and $160) was negative $3 and negative $1

So all we are faced with is a presentation exercise

From the revenue line, deduct $60 and $70 respectively
From cost of sales, deduct $40 and $45 respectively …
… and so on

The effect is to eliminate from the figures that are shown in aggregate just those amounts that relate to the discontinuance and leave, as the pre-penultimate line in the solution describes it, “Profit from Continuing Operations”

You ask why we should remove “… why we must deduct everything (and the whole Revenue, and all expenses) from previous year’s Stat…”

We are removing everything related to those activities that are no longer continuing.

The IAS requirement is to take out from the line entries those amounts that related to the activities of the material business that is now discontinued

And that’s what we’ve done

“And what abo(u)t the cost attributable to the closure amount ($5,000) and gains of $7,000 on the disposal of non-current assets of the discontinued operation”

Here’s what the IASPLUS page on IFRS 5 has to say about the matter:

“Disclosure in the statement of comprehensive income

Detailed disclosure of revenue, expenses, pre-tax profit or loss and related income taxes is required either in the notes or in the statement of comprehensive income in a section distinct from continuing operations. [IFRS 5.33] Such detailed disclosures must cover both the current and all prior periods presented in the financial statements. [IFRS 5.34]”

I believe that that answers your questions!