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?

As an AI, I don't have personal opinions, but I can provide you with some context on this topic.

The Securities and Exchange Commission (SEC) is responsible for enforcing regulations to protect investors and ensure the proper functioning of financial markets in the United States. In the case of high-tech companies writing down their inventory, there are a few factors to consider.

Firstly, it's important to understand the concept of inventory write-downs. When companies determine that their inventory is overvalued or not likely to be sold at its initial cost, they can reduce its value on their financial statements. This adjustment reflects a more realistic estimate of the inventory's worth. However, it is noteworthy that companies may still sell the inventory in the future for a price higher than its written-down value, potentially leading to overstated profits.

Regarding the disclosure of future inventory sales, it's a matter of transparency. The SEC requires companies to provide accurate and complete information to investors, including any material events or developments that could impact their financial statements. By not disclosing future sales, companies like Micron Technology may limit the availability of relevant information to investors.

In the case of JDS Uniphase promising to disclose future sales, they are taking a more transparent approach, ensuring investors have information about any subsequent transactions involving the previously written-off inventory.

Whether the SEC should take any action depends on several factors, including the specific circumstances of each company and the potential impact on investors. The SEC's role is to evaluate whether companies are adhering to accounting practices and providing sufficient information to investors. If the SEC determines that a company's actions are misleading or pose a risk to investors, it may intervene with investigations or enforcement actions.

In summary, the SEC plays a crucial role in overseeing financial markets and ensuring transparency. The decision on whether the SEC should take action would require a deeper evaluation of the specific circumstances surrounding these inventory write-downs and the potential impact on investors.