XYZ Corp, a global manufacturing company, is embarking on a significant expansion project. As part of this initiative, the company is acquiring new machinery through a financing arrangement. The financing involves the issuance of long-term debt, resulting in the need to measure and recognize liabilities accurately.

Most Relevant Measurement: According to SFAC 7, the most relevant measurement of an entity's liabilities at initial recognition and fresh-start measurements should always reflect the present value. This aligns with the concept that the value of money changes over time due to interest rates and other factors. The present value measurement captures the current economic reality of the liability by discounting future cash flows.

Application of SFAC 7: In the case of XYZ Corp, the company recognizes the long-term debt at its present value, considering the interest rate inherent in the financing arrangement. This approach provides a more accurate representation of the economic obligation the company is undertaking. SFAC 7 emphasizes the importance of incorporating cash flow information and present value techniques to enhance the reliability of accounting measurements.

Given the scenario of XYZ Corp's expansion project and financing arrangement, what is the most relevant measurement, according to SFAC 7, for recognizing and measuring the long-term debt liabilities at initial recognition and fresh-start measurements?