Liabilities

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TechCrunch  Jun 16  Comment 
 While we are many years away from an autonomous utopia, where cars pick us up and drive us where we need to go without a human at the wheel, we are seeing the first steps toward self-driving cars. Volvo, Honda, Audi, Tesla—pretty much every...
The Economic Times  Jun 14  Comment 
In addition to the disputed tax demands, the firm also listed the Rs 6,227 crore claim by Epic Systems Corp as a contingent liability for the fiscal 2015-16.
The Hindu Business Line  Jun 11  Comment 
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Insurance Journal  Jun 8  Comment 
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Insurance Journal  Jun 8  Comment 
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newratings.com  Jun 6  Comment 
Marenave Schiffahrts AG: Letter of Intent of financing banks on sale of the entire fleet and release of Marenave Schiffahrts AG from liability Marenave Schiffahrts AG / Key word(s): Letter of Intent/Banking Syndicate 06.06.2016...
Forbes  Jun 2  Comment 
Leveraged loans backing Chemours Co. dipped in the secondary market while the company's high yield bonds edged off lows hit this morning after Citron Research released a report in which it called Chemours “a bankruptcy waiting to happen”...
Automotive World  May 30  Comment 
Volvo underlines why it has committed to accepting liability for its autonomous drive (AD) cars when they are driving in automated mode. By Martin Kahl The post Accept liability for autonomous cars, or you have no product, says Volvo CEO...
Insurance Journal  May 27  Comment 
It’s health insurers’ cardinal rule: disclose pre-existing conditions. Now comes a case in which that familiar decree involves not a patient, but rather a $1.5 million surgical robot known as the da Vinci system. Two insurance companies say da...
The Economic Times  May 27  Comment 
The policy was the missing link from the set of requirements for getting private investment in nuclear power by Manmohan Singh - led government,




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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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