How are current liabilities valued?

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Which method is used to value the current liabilities? Is it fair value and are the current liabilities revalued each year? What about non current liabilities?

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score 0 · Answer 1 · 2012-12-02T18:15:46+00:00

Current liabilities are valued at their face value or the value that are expected to be settled. Current liabilities are usually straightforward to value as they mostly relate to historically stable accruals, purchases made, tax payable etc. The only common thing that is hard to value is the provision and a company needs to be prudent when they recognize a provision.