The Hindu Business Line  Dec 21  Comment 
The Cabinet on Wednesday approved the sale of surplus and vacant land of state-run Hindustan Antibiotics Ltd (HAL) in Pimpri, Pune to meet liabilities worth Rs 821.17 crore. HAL is the country’s fi...
Insurance Journal  Dec 20  Comment 
The parties who have a potential legal claim in the fatal collapse of a building in downtown Sioux Falls, S.D., have had a final opportunity to inspect the ruins before crews start removing critical pieces of the building. Lawyers and experts...
Insurance Journal  Dec 8  Comment 
For two years, stock traders and the attorneys who represent them said insider-trading law was a muddle, with no one knowing exactly what was or wasn’t legal. On Tuesday, the U.S. Supreme Court said it had “easily” settled the question. …
Insurance Journal  Dec 6  Comment 
The U.S. Supreme Court agreed to decide whether Los Angeles County and two police officers must pay a $4 million award to a couple shot during a search for someone else. The case, which comes at a time of heightened …
Insurance Journal  Dec 2  Comment 
Company directors and senior managers across the globe are increasingly likely to face costly regulatory investigations, criminal prosecutions or civil litigation, which not only put their company’s assets, and their own assets, at risk, but...
Financial Times  Dec 2  Comment 
One-time consensus-builder presided over a meltdown of France’s Socialists  Nov 30  Comment 
Chancellor tells Treasury select committee that costs arising from agreement will come within current spending limits A deal to keep Nissan making cars in the north-east will not add to the government’s liabilities, according to Philip Hammond,...


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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