I think it is at fair value, but I am not sure. I know current liabilities are valued at full maturity due to their being near maturity, but this is in practice and am not sure if this is theoretically correct.
2007-01-19 12:32:01 · 3 answers · asked by rummy522 1 in Business & Finance ➔ Investing
Liabilities are basically STD and LTD. Then ofcourse the current assets, which are valued at fair market value or historical cost whichever is lower, I mean the inventories. Then it is an asset which might be financed with borrowed liability. There is no sense in valueing liabilities because these are all contractual instruments whose values the company will have to accept for a long time after they have been contracted. Then of course you might be well of pricing callable bonds to find out when they can be called, like when it is of lesser value to the lender it is wise on the part of the Company to call the bonds.
2007-01-20 02:47:37 · answer #1 · answered by Mathew C 5 · 0⤊ 0⤋
liabilities are always valued at what you owe at a particular point in time. There's only one value...but it can be split between current maturities of LTD and long-term debt.
2007-01-19 22:30:01 · answer #2 · answered by escapegrl1 3 · 0⤊ 0⤋
The first person's answer is incorrect.
Yours is a short question with a very long answer. Earn an accounting degree to learn the complete answer.
I suggest you make your question more precise.
2007-01-20 06:57:56 · answer #3 · answered by andrew f 3 · 0⤊ 2⤋