Available for sale: Difference between revisions

Under US GAAP AFS assets represent securities and other financial investments held for strategic or tactical business reasons (as opposed to speculative reasons). As such, it is accorded special accounting treatment, under which the gains and losses resulting from marking AFS investments to market (revaluing them to market price / [[fair value]] each period) are not included in net income (unlike the gains and losses associated with “trading” investments) but in other comprehensive income(income statement) and accumulated other comprehensive income(balance sheet) until they are realized.