Hi , Wats the difference between d two while considering the time for which securites are kept, if securites are kept for longer/shorter period shud tey be classified as AFS or HFT Reg GT
Held for Trading are typically within three months. If it says long term, you can safely assume it’s AFS, and if it’s short term you can assume HFT (if it fits all the other criteria of HFT).
how to differentiate if its AFS or HTM?
Securities that are bought and held principally for the purpose (“purpose” or “intent” being the key word) of selling them in the near term are classified as trading securities. If intent is not to hold to maturity or for trading, it fits into AFS, not a very consise definition. Also know that gains/losses from AFS securities hit equity.