As FASB codification 420-10-25-12 stays A liability for costs to terminate a contract before the end of its term shall be recognized when the entity terminates the contract in accordance with the contract terms (for example, when the entity gives written notice to the counterparty within the notification period specified by the contract or has otherwise negotiated a termination with the counterparty).

penalty for terminating early Is just a liability?

Please explain. Argue about this statement