CASE 10-2 MEASURING LIABILITIES Long-term leases and long-term debt are typically recognized in the financial statements at their discounted present values. This recognition practice acknowledges the time value of money However, the standards related to accounting for deferred income taxes do not involve discounting expected future tax obligations.

Why do you suppose the FASB requires the use of discounting with some long-term liabilities and not with others? Should discounting be required for all long-term liabilities?

Provide support for your answer.