This chapter describes different accounting standards for available‐for‐sale (AFS) financial assets. According to the accounting standards, AFS financial assets are those non‐derivative financial assets that are designated as available for sale or are not classified as loans and receivables, held‐to‐maturity investments, or financial assets at fair value through profit or loss. Equity instruments that are not designated as financial assets at fair value through profit or loss are categorized as available‐for‐sale instruments. Additionally, investments in equity instruments that do not have a quoted market price in an active market, and whose fair value cannot be reliably measured, should not be designated as at fair value through profit or loss, and such instruments are designated as available‐for‐sale securities. If the equity securities classified as available‐for‐sale are sold, then the realized gains/loss on such sale is transferred from the other comprehensive income to the income statement and an entry is recorded to that effect.