Non-current liabilities

What is non-current liabilities?

Non-current liabilities, also known as non-current liabilities or fixed liabilities, are those liabilities that a company must pay within a period of time greater than one year.

Thus, it is part of the company's balance sheet, along with assets (current and non-current) and current liabilities.

What differentiates current liabilities from non-current liabilities is the term you have to pay the debt. Non-current liabilities will be those commitments generated within the normal operating cycle and maturing outside the accounting year, which has a duration of one year.

Classification of non-current liabilities

A non-current liability is made up of the following accounts:

• Providers: account that represents the value of merchandise purchases that the company makes on credit. The registered balance is creditor and is a long-term debt that the company has the obligation to pay.
• Various creditors: it constitutes the amount of debts that the company has for a concept other than the purchase of goods or contracting of services of its main activity, and that must be paid in the next accounting year (period greater than one year).
• Long-term deferred liabilities: are those obligations that a company has for income received in advance, to provide a service or make a sale in the future, and that must be canceled in a period greater than one year.
• Long-term provisions: they consist of establishing and maintaining, for a period greater than one year, an amount of resources such as expenses, to be prepared in case the payment of an obligation that the company has already contracted previously occurs
• Long-term debt: is that obligation, generated by a loan or a credit granted by a financial institution to the company, which must be paid in the next accounting years.