Final answer:
The fair value option allows financial liabilities to be measured at their current market values, leading to recognition of gains or losses due to market fluctuations. This statement is true.
Step-by-step explanation:
The statement that the fair value option for liabilities permits the recognition of gains and losses due to changes in the market values is true. Under the fair value option, companies can opt to measure eligible financial liabilities at fair value, with changes in fair value recognized in the income statement. This can result in gains or losses if there are fluctuations in market conditions that affect the market value of those liabilities.