Which of the following statements regarding measuring liabilities is incorrect?
a. The effects of non-performance risk must be taken into consideration in measuring the fair value of a liability.
b. Present value techniques may be very useful in the measurement of liabilities.
*c. The effects of non-performance risk is not relevant to measuring the fair value of a liability.
d. The highest and best use does not apply in the measurement of the fair value of a liability.
Correct answer: c