Noncurrent liabilities are initially measured at:

Question

Quizplus · Accepted Answer

Noncurrent liabilities are long-term debts that will not be paid off in the current year, and therefore their present value should be calculated based on current market interest rates. This reflects the time value of money and provides a more accurate representation of the true cost of the liability. Face value and book value do not account for changes in interest rates, while adding the stated interest would overstate the actual liability.

Noncurrent Liabilities Are Initially Measured At