Final answer:
Under the fair value through other comprehensive income model, previously unrealized holding gains and/or losses to the date of disposal are recognized in other comprehensive income and then reclassified to the income statement upon disposal.
Step-by-step explanation:
Under the fair value through other comprehensive income model, with recycling, previously unrealized holding gains and/or losses to the date of disposal are not included in the income statement. Instead, they are initially recognized in other comprehensive income and then reclassified to the income statement upon disposal.
This means that any gains or losses from changes in fair value are recorded directly in shareholders' equity until the assets are disposed of, at which point they are recognized in the income statement.