Should liabilities be reported at fair value or historical cost? SFAS No. 159 (FAB 825) provides the option for organizations to report financial labilitles at far market value. Otherwise, financial Iiabilities will be recognized and reported under the historical cost model If the fair value option is not elected. In your opinion and based on research, should liabilities be reported at fair value or at historical cost? Make sure to present arguments in favor of and against using both methods to justify the logical reasoning behind your opinion.