In what situations would a company use present or future value?

Question

What will be an ideal response?

Answer 1

1) Measuring and reporting certain types of assets and liabilities that represent future cash flows. IFRS and U.S. GAAP require the use of present value concepts in measurement and reporting issues.2) Estimating fair values of assets and liabilities, the thought process behind this theory is that fair value is the current present value.3) Making decisions involving investing and financing activities.