The Hindu Business Line  Aug 6  Comment 
Insurance firmsjack up premiums
The Economic Times  Aug 4  Comment 
The committee agreed with Lohani and said that the Railway Board should approach the Ministry of Finance for the same.
Insurance Journal  Jul 31  Comment 
San Diego, Calif.-based Cavignac & Associates has named Jasmin Divino Cortez an account administrator within the agency’s professional liability department. Cortez will provide support and assistance to the department’s account executive and...
Insurance Journal  Jul 31  Comment 
Oklahoma City-based wholesale insurance broker and program manager, Midlands Management Corp., has introduced comprehensive coverage for the marijuana industry in Oklahoma. The Midlands program offers products liability, general liability,...
Insurance Journal  Jul 27  Comment 
California Governor Jerry Brown issued a plan this week to help the state’s embattled utilities facing liabilities from wildfires. For PG&E Corp., it’s not good enough. “It’s insufficient,” PG&E Chief Executive Officer Geisha Williams...
Insurance Journal  Jul 26  Comment 
Berkshire Hathaway GUARD Insurance Companies is now offering professional liability insurance for accountants in Texas. The new accountants’ professional liability product is designed to meet the needs of smaller firms with less than 10...
Insurance Journal  Jul 26  Comment 
California Gov. Jerry Brown is backing softening the standard that makes electric utilities financially liable when their equipment causes wildfires as the state faces more severe blazes in the midst of climate change. Brown sent lawmakers draft...
Insurance Journal  Jul 26  Comment 
A federal jury will decide what really happened between a former junior finance professor and the tenured Columbia Business School staff member she said sexually harassed her — and whether the university did enough to protect her once she...
Insurance Journal  Jul 20  Comment 
Cybersecurity is the top directors and officers (D&O) liability concern for organizations today, while claims brought by employees, including claims for harassment or discrimination, and regulatory enforcement risks are also critical D&O...
Insurance Journal  Jul 18  Comment 
MGM Resorts International sued the victims of a Las Vegas music festival mass shooting in an effort to block any potential compensation claims against it. The owner of the Mandalay Bay hotel claims a 2002 federal statute wipes out liability …


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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