If a decline in a security's value is judged to be temporary, a company needs to write down the cost basis of the individual security to a new cost basis.

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If a decline in a security's value is judged to be temporary, the company doesn't need to write down the cost basis of the individual security to a new cost basis. Instead, it can hold the security until it recovers its value.

If a Decline in a Security's Value Is Judged to Be