The input cost changes that occur after the purchase of inventory items in a current cost accounting system are recognized as unrealized holding gains.

In a current cost accounting system, changes in input costs after the purchase of inventory items are recorded as unrealized holding gains or losses until the items are sold. This is because the system values inventory at its current replacement cost, rather than the historical cost. As the replacement cost of inventory items increases, their value on the balance sheet also increases, resulting in unrealized holding gains. Conversely, if the replacement cost decreases, inventory is written down and unrealized holding losses are recognized.