curi Test your understanding 2 St. Valentine produced cards and sold roses. However, half way through assets sold off, incurring losses on the disposal of non-current assets of the year ended 31 March 20X6, the rose business was closed and the $76,000 and redundancy costs of $37,000. The directors reorganised the continuing business at a cost of $98,000. Trading results may be summarised as follows: Cards $000 Roses $000 650 US320 Revenue 320 150 Cost of sales 60 Distribution 90 120 Administration 110 Other trading information (to be allocated to continuing operations) is as follows: $000 Finance costs 17 Tax hun bon 31 Required: Hooge (a) Draft the statement of profit or loss for the year ended 31 March 20X6. (b) Explain how an IFRS 5 Discontinued Operations presentation can make information more useful to the users of financial statements. Test your understanding 2 (a) Statement of profit or loss for St Valentine for the year ended 31 March 20X6 $000 Continuing operations: Revenue 650 Cost of sales (320) austan Gross profit 330 (120) Distribution costs (60) R-CS = GP) Administration costo (GP - AC-DC =0p) 150 Operating profit Reorganisation costs (98) 52 (17) Finance costs Profit before tax 0 Income tax expense inti 35 (31) Profit for the year from continuing operations 4 Discontinued operations: Loss for the year from discontinued operations (143) Total loss for the year (139)