Insurance Journal  Apr 21  Comment 
“It’s like a Kardashian episode.” That outburst from an unidentified person spoke to the fact that private companies can make their affairs very public in bitter courtroom battles over management liability. The comment came during a panel...
TechCrunch  Apr 19  Comment 
 Facebook just invited outside developers to help it build an augmented reality content platform. Snapchat banned outside developers in 2015 and has never had a real platform. Read More
Insurance Journal  Apr 18  Comment 
Hawaii officials are looking over two bills that would either keep or end liability protection for cities and counties during drowning incidents. Kauai, Maui and Honolulu officials held a news conference this week to urge lawmakers to extend...
Clusterstock  Apr 10  Comment 
LONDON — A Financial Times investigation has found that several UK companies have used a controversial insolvency procedure to offload up to £3.8 billion of pension liabilities. The investigation found that 17% of the 868 schemes managed by...
The Economic Times  Apr 10  Comment 
Both refuse to take onus of potential liabilities of clients under the new tax regime.
Insurance Journal  Apr 6  Comment 
Beazley has launched the new Anything Lineslip in London offering terms for all U.S. management, professional, cyber and healthcare liability risks. The Anything Lineslip is led by Beazley, supported by a number of other carriers including Antares...
Insurance Journal  Apr 5  Comment 
Defective product/work quality issues, crashes and human error are listed as the top causes of liability loss for businesses, according to a report published by Allianz Global Corporate Specialty (AGCS). Collectively, these top three causes of...
Insurance Journal  Apr 4  Comment 
Marianna Wilson has been hired to serve as professional liability director for national accounts for the Big ‘I’ Advantage program of the Independent Insurance Agents and Brokers of America. The organization created the position to service and...
Insurance Journal  Apr 3  Comment 
Child care providers would be required to carry liability insurance under a bill in the Hawaii Legislature. It’s part of an effort to increase oversight of state-licensed child care facilities. Supporters say requiring liability insurance will...
The Economic Times  Mar 29  Comment 
GST would be payable by the company if there is a supply to an employee of free goods and services over and above the CTC, which is a stipulated sum.


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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