Financial Times  2 hrs ago  Comment 
Inquiry lambasts collapsed store’s former owner, buyer and ‘directors, advisers and hangers-on’
Insurance Journal  Jul 22  Comment 
Law firms have seen an increase in the frequency of malpractice claims, which are becoming more costly to defend and could cause lasting reputational damage, according to a new study by insurance broker Ames & Gough. The study found that …
Insurance Journal  Jul 21  Comment 
The large volume of data Tesla Motors Inc. collects from its cars on the road has armed it with information to publicly counter, and possibly legally defend, claims about the safety of its Autopilot driving-assist software, according to lawyers...
Insurance Journal  Jul 21  Comment 
Berkshire Hathaway Specialty Insurance Company (BHSI) announced it has introduced cyber liability insurance in Australia and named Emma Osgood as head of Cyber Liability in the region. BHSI is focusing on the mid-to-large-tier market segment and...
Insurance Journal  Jul 20  Comment 
Cybersecurity is the biggest concern for companies evaluating risk in the nascent self-driving vehicle industry, according to a survey conducted by Munich Re. The world’s second-biggest reinsurer found that 55 percent of corporate risk managers...
Insurance Journal  Jul 19  Comment 
Specialty underwriter and program administrator Business Risk Partners (BRP) has launched an excess management liability facility backed by Great American Insurance Group. The facility will provide up to $5 million in capacity, available...
Insurance Journal  Jul 19  Comment 
Berkshire Hathaway Specialty Insurance (BHSI) reported that it has expanded into Transactional Liability Insurance team in the U.S. and Canada and named Robert Underhill as senior vice president, head of Transactional Liability. The company also...
Insurance Journal  Jul 19  Comment 
DuPont Co. and Dow Chemical Co. must tell shareholders before next week’s merger vote that they may face exposure to costly potential damages from claims that a chemical used to make Teflon caused cancer and other ailments, community activists...
Insurance Journal  Jul 19  Comment 
Berkshire Hathaway subsidiary National Indemnity Co. is acquiring Medical Liability Mutual Insurance Co. of New York for an undisclosed price. The deal comes as the insurer completes its conversation from a mutual company to a stock insurer. The...
Reuters  Jul 18  Comment 
Medical Liability Mutual Insurance Co (MLMIC) said it agreed to be bought by Berkshire Hathaway Inc's unit National Indemnity Co.


A liability is an accounting term for anything of value a company or an individual owes. Liabilities can include financial liabilities usually debt or fixed goods which have yet to be delivered. Publicly-traded companies are required to list a summary of their assets and liabilities every quarter on their balance sheet, where accounting rules determine how liabilities are categorized and valued. The opposite of a liability is an asset - something of positive value, or something the company owns.

Types of Liabilities

From an accounting perspective, liabilities are divided into two broad categories:

Current Liabilities

Current liabilities are debts or obligations which are due within a year. Current liabilities are reported on the company's balance sheet and include Short-Term Debt, accrued liabilities and Accounts payable.

  • Short-term bank loans: which are a form of short-term debt that the company takes out.
  • Accounts payable: which is money owed to a company, for a good or service. This includes unpaid bills.

By the principle of prudence, current liabilities are reported in the balance sheet at their least favorable valuation.

Long-Term Liabilities

Long-term liabilities are liabilities that will not be paid off or are not due within a year. Long-term liabilities are also reported on the company's balance sheet and include items such as long-term bank loans and bonds issued by the company. They are generally subject to interest payments. Examples include: company cars, computers and investment in another company.


Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki