In one sentenceA major part of a business's activity, such as a segment or region, that it has sold, decided to sell or closed; its result is shown in the income statement on a separate line from continuing operations.
Simply put
If you close the restaurants segment and keep the catering segment, the restaurants' loss will not recur. So it is separated on its own line so the reader can see the profit of the activity that will continue (international standard IFRS 5).
Closing a small branch is not a discontinued operation; what is meant is a major part with results that can be distinguished.
Worked example
A food company made a profit of 600,000 SAR from its catering activity and lost 150,000 SAR in the restaurants segment it decided to sell.
Profit from continuing operations600,000 SAR
Loss from discontinued operations150,000 SAR
Net profit for the year: 600,000 − 150,000450,000 SAR
Don't confuse it with
Operating segments reportingSegment reporting shows all operating segments, while discontinued operations are a segment that has left or will leave the business.