Long-Term Liabilities

Long-Term Liabilities

Long-term liabilities on a company’s balance sheet are non-current liabilities i.e those that fall due after one year from the reporting date. It excludes obligations that fall due after more than one year but which are within the company’s operating cycle. These are treated as short-term liabilities. An operating cycle is the time it takes to convert inventory to cash. Long-term liabilities include bonds and loans with more than a year to run to maturity, pension liabilities, deferred tax liabilities, long-term portion of lease liabilities and long-term provisions.

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