Long-term liabilities

Long-term liabilities are liabilities with a future benefit over one year, such as notes payable that mature longer than one year.

In accounting, the long-term liabilities are shown on the right wing of the balance-sheet representing the sources of funds, which are generally bounded in form of capital assets.

Examples of long-term liabilities are debentures, mortgage loans and other bank loans. (Note: Not all bank loans are long term as not all are paid over a period greater than a year, an example of this is a bridging loan.)

By convention, the portion of long-term liabilities that must be paid in the coming 12-month period are classified as current liabilities. For example, a loan for which two payments of $1000 are due, one in the next twelve months and the other after that date, would be 'split' into two: the first $1000 would be classified as a current liability, and the second $1000 as a long-term liability (note this example is simplified, and does not take into account any interest or discounting effects, which may be required depending on the accounting rules).

Also "long-term liabilities" are a way to show that you have to pay something off in a time period longer than one year.

See also

• Fixed liability
• Creditor falling due after more than one year

This accountancy-related article is a stub. You can help Wikipedia by expanding it.v · Categories: Generally Accepted Accounting Principles Accounting stubs Wikimedia Foundation. 2010. Игры ⚽ Поможем решить контрольную работу Patas Monkey Petty cash Look at other dictionaries: Long-term liabilities — Amount owed for leases, bond repayment and other items due after 1 year. The New York Times Financial Glossary * * * long term liabilities long term liabilities ➔ liability …   Financial and business terms long-term liabilities — Amount owed for leases, bond repayment, and other items due after 1 year. Bloomberg Financial Dictionary * * * long term liabilities long term liabilities ➔ liability …   Financial and business terms Long-Term Liabilities — Recorded on the balance sheet, a company s liabilities for leases, bond repayments and other items due in more than one year. A company s long term liabilities are accounted for by its debt obligations to other parties that last longer than one… …   Investment dictionary Other Long-Term Liabilities — A balance sheet item that includes obligations which are not going to be paid off within the year or operating cycle, but are not included in the long term liabilities category. Other long term liabilities are commonly found directly beneath the… …   Investment dictionary long term liabilities — column in a ledger that details the debts that a business will have to pay off in the coming years (Accounting) …   English contemporary dictionary long-term liability — UK US noun [usually plural] (also fixed liability) ACCOUNTING, FINANCE ► a debt that does not need to be paid for at least a year: »Strict rules have been blamed for forcing life insurers to sell shares in order to fund long term liabilities →… …   Financial and business terms current maturities of long term liabilities — section of long term loans that the business must pay back during the present fiscal year …   English contemporary dictionary Other long term liabilities — Value of leases, future employee benefits, deferred taxes and other obligations not requiring interest payments that must be paid over a period of more than 1 year. The New York Times Financial Glossary …   Financial and business terms Long-term financing — liabilities ( liability) repayable in more than one year plus equity. Bloomberg Financial Dictionary …   Financial and business terms other long-term liabilities — Value of leases, future employee benefits, deferred taxes ( deferred tax expense), and other obligations not requiring interest payments that must be paid over a period of more than one year. Bloomberg Financial Dictionary …   Financial and business terms 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”