Which of the following statements correctly describes the required accounting for an impairment of a financial instrument designated as available for sale (AFS)?
1. There is no need to record an impairment loss, since AFS securities are carried at market value.
2. The impairment loss is charged to other comprehensive income; impairment losses cannot be reversed to net income.
3. The impairment loss is charged to net income; impairment losses cannot be reversed to net income.
4. The impairment loss is charged to net income; specified impairment losses can be reversed to net income.