Both IFRS and U

Multiple Choice

Both IFRS and U.S. GAAP permit valuation of long-term debt and other liabilities at

A) present value discounted at the firm's cost of capital.
B) current market values of the obligations, based on changes in the discount rate with unrealized gains and losses reflected in a separate account in stockholders' equity.
C) fair value with gains and losses on changes in fair value recorded in income in certain situations.
D) historic costs without reflecting changes in valuation as obligations will be retired at their maturity date.