FAS 115
Financial Accounting Standard No. 115, Accounting for Certain Investments in Debt and Equity Securities. A rule promulgated by the AICPA that requires different accounting treatment for unrealized gains and losses incurred for securities held in portfolios. Unrealized gains and losses from trading account securities must be reflected in reported earnings. Unrealized gains and losses from securities deemed available for sale must be netted to a single number that is shown as a component of shareholders' equity until realized. Gains and losses for securities deemed to be held to maturity are not reflected in either the income statements or balance sheets of the holders. American Banker Glossary