What is the meaning of lower of cost or market (LOCOM)?

lower of cost or market (LOCOM) is an accounting method used to establish the dollar amount at which assets are recorded on a savings association's books. The amount established is the lower of the cost of the asset or the current market value. Under this method, assets must be written down if the market value falls below the cost. They may also be written up but not above their amortized cost.

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APABarry Goldsmith. (2010). lower of cost or market (LOCOM). Retrieved September 30, 2026, from http://smartdefine.org/lower_of_cost_or_market_(locom)/definitions/1157618
ChicagoBarry Goldsmith. 2010. "lower of cost or market (LOCOM)" http://smartdefine.org/lower_of_cost_or_market_(locom)/definitions/1157618 (accessed September 30, 2026).
HarvardBarry Goldsmith 2010, lower of cost or market (LOCOM), Smart Define, viewed 30 September, 2026, <http://smartdefine.org/lower_of_cost_or_market_(locom)/definitions/1157618>.
MLABarry Goldsmith. "lower of cost or market (LOCOM)" 21 October 2010. Web. 30 September 2026. <http://smartdefine.org/lower_of_cost_or_market_(locom)/definitions/1157618>