SINCE I AM STUDYING FINANCIAL REPORTING I HAVE LEARNED THE CALCULATIAON OF LONG TERM LIABIITY WE REPORTED AT PRESENT VALUE I HAVE LEARNED THE CALCULATION BUT I DID NOT UNDERSTAND THJE THE CONCEPT BEHIND THIS CALCULTION HOPE YOU WLL HELP ME
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present value of liability
5y ago#1Hi,
It needs to be recognised at present value to reflect its worth in today's monetary terms. The ultimate concept is taken from the management accounting side of the syllabus where we are dealing with the time value of money.
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