The Hindu Business Line  May 5  Comment 
Lok Sabha passes Finance Bill post amendments
Insurance Journal  May 4  Comment 
Liberty International Underwriters (LIU) has named Casey Hartley as U.S. General Liability product line leader. Based in Atlanta, Miss., Hartley will have responsibility for the technical underwriting, portfolio performance and overall product...
Automotive World  May 2  Comment 
The automotive industry must prepare for lawsuits that hinge on algorithms and analytics. By Jonathan Judge The post Computers take the wheel, and new liability ensues appeared first on Automotive World.
Insurance Journal  May 2  Comment 
National Football League executives may for the first time have to testify about what they knew of concussion risks after a judge cleared the way for questions from insurers who are suing to avoid paying more than $1 billion in …
Insurance Journal  Apr 29  Comment 
QBE North America has promoted John Burkhart to senior vice president and head of Management Liability & Professional Lines (MLPL). In this newly created role, Burkhart will assume responsibility for QBE North America‘s entire Specialty MLPL...
Reuters  Apr 28  Comment 
Tata Steel's pension liabilities are putting off buyers for its British steelmaking operation, Business Secretary Sajid Javid said on Thursday, underlining the difficulty...
OilVoice  Apr 27  Comment 
Rose Petroleum plc the AIMquoted AIM ROSE natural resources company is pleased to provide an operational update on the current activities taking place within both its Oil and Gas and Mining divi
Insurance Journal  Apr 21  Comment 
The California Supreme Court has granted review to consider when and if evidence of industry custom and practice is admissible in a strict products liability action. In Kim v. Toyota Motor Corp. plaintiff William Jae sued Toyota for injuries Kim …
The Economic Times  Apr 17  Comment 
Nuclear Power Corporation of India Ltd (NPCIL) is confident of getting the public liability insurance policy in 10-15 days time, said a senior official.
The Times of India  Apr 16  Comment 
The financial assets of Indian residents, including what the rest of the world owes Indians and gold bullion held as reserve assets, have more than doubled in the last decade. It is, however, interesting to note that the claims of nonresidents on...


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.


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