A reserve that consists of the cumulative fair value gains or losses on available for sale assets (AFS), and is held in equity. The change in fair value of available for sale assets (i.e., assets that an entity does not intend to hold to maturity, but rather offer for sale) is not recorded in the statement of income, but will rather be reflected in the available for sale reserve.

As a result, this change in fair value will appear on the statement of financial position and statement of changes in equity.