Final answer:
Future purchase commitments are not routinely recorded as liabilities at discounted values as of year-end unless there is an unavoidable obligation for which future costs exceed benefits. Often, commitments are only recognized as liabilities when goods are received or the purchase obligation terms are met.
Step-by-step explanation:
The statement that future purchase commitments should be recorded as liabilities at discounted values as of year-end is generally false. Purchase commitments are not recognized as liabilities on the balance sheet until the goods or services are received or the conditions of the purchase obligation are met. However, if there is an unavoidable obligation where the future costs exceed the economic benefits, a liability should be recognized for the loss. The concept of present discounted value applies here, where the calculation involves discounting the future expected cash flows using an appropriate interest rate to determine their present value. This is similar to the valuation of bonds or other financial instruments, where future payments (coupons and principal) are discounted back to their present value using the market interest rate.