Available-for-sale debt securities are accounted for at:

Available-for-sale debt securities are indeed accounted for at fair value, with any unrealized gains and losses recognized in other comprehensive income, rather than in net income. This means that while these securities are intended to be held for an indefinite period and may not be actively traded, fluctuations in their fair value do not impact the entity's net earnings until they are sold. Instead, these unrealized gains and losses are reported in a separate component of equity, which contributes to a more comprehensive view of an organization's financial position.

The recognition of unrealized gains and losses in other comprehensive income allows for a clearer reflection of the performance of the securities while maintaining the integrity of net income, which may be impacted by operational results. This accounting treatment also helps investors and stakeholders understand the potential value fluctuations of an entity's investments without immediately affecting reported earnings.

Understanding this framework is crucial for evaluating the financial statements of companies and assessing their investment portfolios. The classification of available-for-sale securities allows for strategic financial reporting, providing insights into the company's performance and risk exposure without distorting immediate earnings calculations.