Lower of cost or market

Can someone clarify this issue for me? When you hold securities at lower of cost or market, do you have income statement gains/losses: a) when market value moves below cost; b) when market value returns to cost from being below or above cost. Is part b always true? It seems like you have no net income gain from unrealized profits but you do have net income loss from unrealized losses.

LOCOM is a conservative approach. If MV< Cost the we realise the unrealised losses. If MV improves , no unrealised profit is recognised. If I recall writedowns are not restored under US GAAP. Hope this helps.

the LOCOM is an accounting method, only recognizes Interest and Realized G/L on I/S, but the carrying value on the B/S reflects the unrealized Loss or Cost. Once you classify the securities then you can realize G/L in I/S according to the appropriate method