Available for sale

Under IAS 39, financial instruments must be assigned in the accounting category. The category addresses how changes in value are to be treated in terms of earnings. These rules are particularly essential in accounting for banks.


Loans and receivables (L & R)

To German: loans and receivables. This category includes financial instruments are categorized, which are not traded on public markets. These financial instruments are measured at amortized cost. Discounts are deferred and shown compliant effective interest in net interest income. Impairments resulting from changes in creditworthiness of the debtor are determined and written down by impairment test.

Typical examples are assigned by banks loans. Is a bank a loan with a term of 10 years at an interest rate of 5 % and increases the interest rate to 6%, the bank would be able to sell the loan only at a discount. This theoretical loss is not shown in the profit and loss account. The assumption is that the bank typically to maturity considers this loan ( 100% ) and the loss is therefore never realized.

Held to maturity ( HTM )

To German: Hold to maturity. These are securities which the company wants to keep until maturity in stock. Treatment is analogous to L & R. For the procedure for premature sale see: tainting

Held for trading ( HFT)

To German: For trading purposes held. These are securities and derivatives which are not permanently held in stock, but bought and sold for commercial purposes; they are to be valued daily at market value. If there is not one which a fair value is to be set. Changes in value are shown directly in the income statement as profit / loss. The proportionate premium / discount is not shown as interest income but also as trading income. For other financial instruments using the category fair value at inception ( FVaI ) with the same function. The generic term for both is at fair value through profit or loss.

Available for Sale ( AFS)

To German: For Sale kept. This includes financial instruments that are not intended for short-term commercial transactions in which a sale but may well happen. These are treated analogously HFT. The difference between HFT is that the value changes not directly in the income statement but in the revaluation reserve are shown.

To German: Other liabilities. These are valued analog L & R at amortized cost.


Also in the "Generally accepted accounting principles in the United States " U.S. GAAP, these categories are used. Available for Sale ( AFS) is next to Held for Trading ( HFT) and held to maturity ( HTM ) is one of three recognized in U.S. GAAP classifications.


  • IFRS