Under U.S. rules, after a company "writes down" an inventory item to a "market" value, it should later increase the carrying value of the inventory item if the market for the item improves.

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Under U.S. Generally Accepted Accounting Principles (GAAP), once inventory has been written down, any subsequent increase in the value of the inventory cannot be recognized until the inventory is actually sold.

Under US Rules, After a Company "Writes Down" an Inventory Item