AFS
Business & Finance abbreviation · Accounting
| Stands for | Available for sale |
|---|---|
| Categories | Business & Finance |
AFS stands for Available for sale, an accounting abbreviation.
US GAAP classification for debt securities that are held neither for trading nor to maturity, measured at fair value with unrealized gains and losses recorded in other comprehensive income rather than net income. Banks hold much of their securities portfolios as AFS.
Example: Rising yields cut the fair value of the insurer's AFS bonds by $1.2 billion, all of it through OCI.
Usage notes
Since ASU 2016-01, equity securities can no longer be classified as AFS under US GAAP; changes in their fair value go through net income. The IFRS 9 equivalent is fair value through other comprehensive income (FVOCI).
Related abbreviations
More accounting abbreviations
- ABC – Activity-based costing
- AICPA – American Institute of Certified Public Accountants
- AJE – Adjusting journal entry
- AOCI – Accumulated other comprehensive income
- AP – Accounts payable
- AR – Accounts receivable
- ASC – Accounting Standards Codification
- ASU – Accounting Standards Update
- B/S – Balance sheet
- BEP – Break-even point
- BV – Book value
- CECL – Current expected credit losses