Discontinued Operations represent components of a business, such as segments, product lines, or subsidiaries, that have either been disposed of through sale or other means, or are currently held for sale. These operations are reported separately on financial statements to provide clarity and help users of those statements understand the financial impact of such actions.

For example, a company that decides to shut down one of its production units in a specific region and focus on its core business activities elsewhere would report the financial results of that production unit as Discontinued Operations. This is valuable in portraying the company's ongoing financial performance without the influence of non-recurring activities.

By separating Discontinued Operations, businesses aim to offer better transparency and assist stakeholders, such as investors and analysts, in making informed decisions. The results of such operations typically include revenues, expenses, gains, or losses directly related to the discontinued component.