Non-Current Liabilities

Non-Current Liabilities (Definition)

Non-current liabilities are financial obligations that are due after a period of at least one year from the date of the balance sheet.

Key aspects of non-current liabilities include:

1. Also known as long-term liabilities
2. Include items such as long-term loans, bonds payable, and deferred tax liabilities
3. Recorded on the balance sheet separate from current liabilities
4. Often used to finance large investments or acquisitions
5. Can impact a companys long-term financial structure and risk profile
6. May have specific covenants or conditions attached
7. Understanding non-current liabilities is crucial for assessing a companys long-term financial health and solvency

Proper management of non-current liabilities is essential for maintaining financial stability and supporting long-term growth strategies.