Available-for-sale investment definition
/What is an Available-for-Sale Investment?
An available-for-sale investment is a non-derivative asset classification that does not fit into a variety of other classifications. In essence, this investment class can include stocks and bonds, as well as other financial assets that do not meet the requirements for the held-to-maturity or trading securities classifications.
Accounting for an Available-for-Sale Investment
An available-for-sale investment is carried on an entity's books at fair value. If there is a change in fair value from period to period, the gain or loss is recorded in equity.
Presentation of an Available-for-Sale Investment
An available-for-sale investment is not classified as held-to-maturity, nor it is a loan, a receivable, or a financial asset at fair value through profit or loss.