The unrealized holding gains and losses on available-for-sale investments are recorded as an adjustment to the Unrealized Holding Gain-Available-for-Sale account or Unrealized Holding Loss-Available-for-Sale account.

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This is true according to generally accepted accounting principles. Unrealized gains and losses on available-for-sale investments are recorded as an adjustment to the Unrealized Holding Gain-Available-for-Sale account or Unrealized Holding Loss-Available-for-Sale account on the balance sheet. These accounts are used to report the difference between the fair value and the cost of the investment until it is sold, at which point any realized gains or losses are recognized in the income statement.

The Unrealized Holding Gains and Losses on Available-For-Sale Investments Are