The process of reclassifying gains or losses from equity (fair value changes) to P&L (statement of profit and loss, SOPL) as an accounting adjustment. This involves recognition of gains/ losses, in a subsequent period, in the SOPL after having been recognized initially in the other comprehensive income (OCI). Recycling is usually prompted on disposal of a foreign operation, derecognition of available-for-sale (AFS) financial assets (securities), occurrence of profits or losses that affect a hedged transaction.

Recycling, as an accounting adjustment, is typically carried out to mitigate any double counting in comprehensive income items that appeared on income statement and contributed to net profit in a given period, and had also been part of OCI in that period or earlier periods.

Recycling is also known as a reclassification adjustment.