What Are Non-Current Liabilities And It's Types ?

These are financial obligations, which company is liable to pay off in more than 12 months (more than 1 year). Also called as long term liabilities. Examples : deferred tax liability, mortgage loan etc.

What Are The Types of Non-Current Liabilities ?

Non-Current Liabilities constitutes of following line items..

1. Borrowings or Debt : These are long term bank borrowings, debt borrowings or borrowings from related party. These can be secured or unsecured.

2. Deferred Tax Liabilities (DTL) : It generally appears, when the tax obligations is in one financial year, but it will be paid in next year. It is generally created when the company pay less tax than obligations.

3. Other Non-Current Liabilities : These are residual non-current liabilities (generally of small amount) that do not meet the criteria of being classified separately.

4. Provisions : It is the money kept aside for the probable contingency ( chances of converting in Liabilities is very high) in future.