Insurance Journal  Sep 30  Comment 
The question of whether Colorado ski resorts can be liable for avalanches that happen within their boundaries comes before the state’s high court this week in a lawsuit prompted by a skier’s death. The case involves the death of Christopher...
Insurance Journal  Sep 29  Comment 
NAS Insurance has launched “NAS CyberNET Support,” a customer support product which includes 24/7 phone support and a range of cyber risk management resources. NAS CyberNET Support is a full suite of policyholder support services, including...
Wall Street Journal  Sep 28  Comment 
Domino’s Pizza Inc. said it plans to refinance some of its debt and that costs related to an increase in workers’ compensation and liability claims would cut into earnings in its most recently-ended quarter.
Insurance Journal  Sep 28  Comment 
A sanitation company at the center of a major U.S. labor board ruling that could force companies like McDonald’s Corp. to negotiate directly with franchise and contract workers has refused to bargain with workers hired by a staffing agency. The …
Insurance Journal  Sep 23  Comment 
John Iannotti has joined OneBeacon Insurance Group as president of Professional Liability. Iannotti will oversee OneBeacon’s financial services, management liability and design professional liability business units, which are led by Craig...
Insurance Journal  Sep 21  Comment 
The Texas Department of Insurance will hold a public hearing on a request by the Texas Windstorm Insurance Association to increase maximum policy liability limits. The hearing under Docket No. 2780 will be held at 10:30 a.m., on Thursday, Oct. …
Forbes  Sep 16  Comment 
Chinese companies are responsible for fully half of emerging Asia's junk bond issuances


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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