A category of financial assets that meets specific criteria for an available for sale (AFS) designation and classifications.

These criteria are 1) designation of non-derivative financial assets as available for sale and 2) non-classification of non-derivative financial assets as as i) held-to-maturity (HTM) investments, ii) financial assets at fair value through profit or loss (FVTPL), iii) loans and receivables.

Under best practices and global standards, a gain or loss on an available-for-sale financial asset is recognized in other comprehensive income (OCI), except for impairment losses and foreign exchange gains/ losses, as long as the asset is recognized in an entity’s books of account.