Liabilities

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Insurance Journal  5 hrs ago  Comment 
UCPM, Inc., an environmental insurance provider, has entered into an agreement with Rockhill Insurance Co. to offer a comprehensive insurance package for environmental consultants that includes commercial general liability, contractor’s...
Insurance Journal  Jan 28  Comment 
Safety National Re announced it has added Charles Puno as vice president with a specialty in professional liability treaty reinsurance. He is based in Indianapolis, Ind. With over 25 years of industry-related insurance and reinsurance experience,...
Insurance Journal  Jan 28  Comment 
Berkshire Hathaway Specialty Insurance (BHSI) has launched life agent & broker dealer professional liability insurance and named Atea Martin as head of claims. Underwriting of the new line is overseen by Paul Humel, AVP, Financial Institutions,...
Mondo Visione  Jan 26  Comment 
Thomson Reuters has published its sixth annual State of Regulatory Reform special report which shows that despite differing local conditions, compliance officers are wondering when the regulatory tide will turn decisively after years of...
Insurance Journal  Jan 25  Comment 
http://www.insurancejournal.com/magazines/coverstory/2016/01/11/394052.htmhttp://www.insurancejournal.com/magazines/coverstory/2016/01/11/394052.htm A California waste management company has launched a legal challenge to a new U.S. labor board...
The Australian  Jan 25  Comment 
Clive Palmer’s use of an alias to secretly approve expenditure at nickel refinery could expose him to personal liability.
Insurance Journal  Jan 25  Comment 
Berkshire Hathaway Specialty Insurance (BHSI)  has expanded its executive & professional lines appetite to private companies in the U.S., launching the Executive First Private Company Portfolio. The portfolio offers directors & officers...
Insurance Journal  Jan 21  Comment 
More U.S. companies could be classified as “joint employers” of workers employed by a staffing agency or contractor and held liable for labor violations tied to those staff, the U.S. Labor Department said in guidance published Wednesday. Joint...
The Hindu Business Line  Jan 7  Comment 
Operator to contribute 5-10 paise for every unit of electricity sold
Insurance Journal  Jan 5  Comment 
Founders Professional has promoted Jaimee Williams to professional liability broker in Chicago. Williams will be responsible for the continued expansion of Founders’ footprint in the small law firm space. Williams joined Founders Professional...




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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.

References

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