Accounting standards require that liabilities be recorded at their present value.

Name: Accounting standards require that liabilities be recorded at their present value.
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Accounting standards, like IFRS and GAAP, require that liabilities be recorded at their present value, which is the discounted value of expected future cash flows needed to settle the liability. This is known as the principle of present value measurement.

Accounting Standards Require That Liabilities Be Recorded at Their Present