Non-Current Liabilities

Financial Accounting

Non-Current Liabilities are liabilities that will not be settled within one year or the operating cycle if the operating cycle is longer than one year.

Examples of non-current liabilities are:

  • Contract liabilities classified as non-current.
  • Long-term notes or bonds payable.
  • The long-term portions of long-term debt and lease liabilities (the portions of the principal due after the operating cycle (usually twelve months).
  • Pension obligations.
  • Net deferred tax liabilities.
  • The non-current portion of assurance-type warranties for which the term of the warranty extends beyond the next accounting period.

Most long-term debt is subject to various covenants and restrictions, requiring a great deal of disclosure in the financial statements

Leave a comment