Long-term liabilities definition
/What are Long-Term Liabilities?
Long-term liabilities are those obligations of a business that are not due for payment within the next twelve months. This information is separately reported, so that investors , creditors , and lenders can gain a better understanding of the obligations that a business has taken on. These obligations are usually some form of debt ; if so, the terms of the debt agreements are typically included in the disclosures that accompany the financial statements . Deferred tax liabilities, deferred compensation, and pension obligations may also be included in this classification.
Presentation of Long-Term Liabilities
All line items pertaining to long-term liabilities are stated in the middle of an organization’s balance sheet . Current liabilities are stated above it, and equity items are stated below it.
Terms Similar to Long-Term Liabilities
Long-term liabilities are also known as noncurrent liabilities and long-term debt .
