Question

Many high-technology companies, like Nortel Networks,Micron Technology and JDS Uniphase, have written down massice amounts of their inventory. For example, Nortel Networks revalued some of its inventory parts at $0, though the inventory intially cost Nortel $650 million. Companies are rquired to report whether they write off th cost value or their inventory even if they do not dispose of the inventory. Later on they may sell this inventory but are not required to repost the sale for cash of previously "worthless" inventory. The effect may be that in future years, when the inventory sold,profits are overstated. Also in the article, JDS Uniphase said it will write off $250 million of its inventory but promise to disclose any future sales. On the other hand, Micron Technology which wrote down $260 million, won't disclose future sales. Should the Securities and Exchange Commission do anything? Why?