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The FASB requires that deferred tax assets and liabilities not be discounted. In at least three...

The FASB requires that deferred tax assets and liabilities not be discounted. In at least three paragraphs, support the position presented below.

Position #1:  Present arguments in favor of discounting deferred tax liabilities.

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Answer #1

Position 1)

The deferred tax liabilities are the taxes which are not paid to the government due to lower income, so as the long term liabilities like bonds payable and long-term leases and even the notes receivable are always discounted and valued at their present values. This is due to bring consistency in the interest paid and received in the next best opportunity. Therefore, the taxes which are not paid to the government do have certain next best opportunity, so the deferred tax liabilities should also be discounted.

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