SFAS No. 159 (see FASB 825) allows companies to value financial liabilities at fair value. If not elected, financial liabilities will continue to be accounted for under the historical cost model. In at least three paragraphs, support one of the positions presented below. You should use references to reference material, as necessary.

Position #1: Present arguments in favor of measuring liabilities at fair value.

Position #2: Present arguments against measuring liabilities at fair value.