Long-term liabilities

(redirected from Non-current liability)

Long-term liabilities

Amount owed for leases, bond repayment, and other items due after 1 year.

Long-Term Liability

Any liability with a term of greater than a year. In both investing and personal finance, a long-term liability often is a loan with a long payback period. Examples include a 30-year mortgage or a 10-year Treasury note. See also: Long-term financing.
References in periodicals archive ?
The non-current liability was reduced to GBP2.0 million from GBP4.7 million.
Significantly, the debt has also been pushed back to a "non-current liability" that means it is only due between two and five years unlike in previous years.
A successful conclusion to Zain Saudi Arabia's talks with the creditors "would enable it continue classifying this ($2.5 billion) financing as a non-current liability", it added.
In fact, sometimes it will look very good when there may be liquidity problems that will be hidden because the bank line of credit is shown as a non-current liability. Classifying a credit line as a long-term l iability is one way a company may try to make their statements look better.
The amount of capital due for settlement over the next 12 months is classified as a current liability and the balance as a non-current liability. The lease is like a loan from the lessor, cuffing out the middleman.
The capital due for settlement over the next 12 months is classified as a current liability and the balance as a non-current liability. The lease is effectively a loan from the lessor, cutting out the middleman (the bank).
If the payments are made in arrears, then the current liability is the next period's lease instalment, less the amount of interest cost in that instalment, and the non-current liability is the interest cost plus the remaining amount of the liability.
So at the end of the first year there will be a finance charge in the income statement of $4,361 and a non-current liability in the statement of financial position of $50,861.
* Financial liability (shown as a non-current liability).
* You need to calculate the finance charge and the current and non-current liability for the second year of the lease.

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