Perkin Co’s

Dear Tutor,

In order to compare Perkin Co’s results for the years ended 20X6 and 20X7, the results of Swanson Co need to be eliminated from the above consolidated statements of profit or loss for 20X7.
Although Swanson Co was correctly accounted for in the group financial statements for the year ended 31 December 20X7, a gain on disposal of Swanson Co of $9·44m is currently included in operating expenses. This reflects the gain which should have been shown in Perkins Co’s individual financial statements. In the year ended 31 December 20X7, Swanson Co had the following results:
$m Revenue 13·50
Cost of sales 6·60
Operating expenses 2·51
Finance costs 1·20

Operating expenses (3,300 – 1,673 (S x 8/12) + 9,440 profit on disposal)

Why do we add profit on disposal at operating expenses?

Thank you.