Canadian practice requires that liabilities be recorded at their present value.

Question

Quizplus · Accepted Answer

This is in accordance with International Financial Reporting Standards (IFRS) which is applicable in Canada. Under IFRS, liabilities are recorded at their present value unless there is a specific exemption. This is done to accurately reflect the financial position of a company and to provide a true and fair view of their financial statements.

Canadian Practice Requires That Liabilities Be Recorded at Their Present