Editing Long-term liabilities

{{Short description|Liabilities that are due beyond a year or the normal operation period of the company}}
{{More citations needed|date=October 2017}}{{accounting}}
'''Long-term liabilities''', or non-current liabilities, are [[liability (accounting)|liabilities]] that are due beyond a year or the normal operation period of the company.<ref name=":0">{{Cite web|url=https://www.accountingcoach.com/blog/what-is-a-long-term-liability|title=What is a long-term liability?|website=AccountingCoach|language=en|access-date=2017-10-30}}</ref>{{Better source|date=October 2017}} The normal operation period is the amount of time it takes for a company to turn inventory into cash.<ref name=":1">{{Cite news|url=http://www.investopedia.com/terms/l/longtermliabilities.asp|title=Long-Term Liabilities|date=2003-11-23|work=Investopedia|access-date=2017-10-30|language=en-US}}</ref> On a classified [[balance sheet]], liabilities are separated between current and long-term liabilities to help users assess the company's financial standing in short-term and long-term periods. Long-term liabilities give users more information about the long-term prosperity of the company,<ref>{{Cite web|url=https://accountingexplained.com/financial/lt-liabilities/|title=Long-term Liabilities|website=Accounting Explained|language=en|access-date=2017-10-30}}</ref>{{Better source|date=October 2017}} while current liabilities inform the user of debt that the company owes in the current period. On a balance sheet, accounts are listed in order of liquidity, so long-term liabilities come after current liabilities. In addition, the specific long-term liability accounts are listed on the balance sheet in order of liquidity. Therefore, an account due within eighteen months would be listed before an account due within twenty-four months.
==Examples==
Examples of long-term liabilities are [[bonds payable]], long-term loans, [[capital lease]]s, pension liabilities, post-retirement healthcare liabilities, [[deferred compensation]], [[deferred revenue]]s, deferred income taxes, and derivative liabilities.<ref name=":0" />{{Better source|date=October 2017}}

== Exceptions ==

If a liability is currently due in fewer than twelve months and is in the process of being [[refinance]]d so that it is due after a year, then a company can record this debt in long-term investments.<ref name=":1" /> Additionally, if a liability is to be covered by a long-term investment, it can be recorded as a long-term liability even if it is due in the current period. Still, the long-term investment must be sufficient to cover the debt.<ref name=":1" />

==See also==
* [[Fixed liability]]
* [[Creditor]] falling due after more than one year

== References ==
{{Reflist}}

[[Category:Liability (financial accounting)]]


{{accounting-stub}}

[[ja:長期負債]]