For available-for-sale securities, a decline in value due to a temporary decline in market value below cost is

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For available-for-sale securities, a temporary decline in market value below cost is recognized in other comprehensive income (OCI) and reported as a separate component of stockholders' equity on the balance sheet, rather than through the income statement. This approach reflects the temporary nature of the decline and the intention not to sell the securities in the short term.

For Available-For-Sale Securities, a Decline in Value Due to a Temporary