If a company has current liabilities that are being refinanced into long-term liabilities, the intent to refinance is present, and there is evidence that the refinancing has begun, then it may report current liabilities as long-term liabilities because after the refinancing, the obligations are no longer due within 12 months
Long-term liabilities are listed in the balance sheet after more current liabilities, in a section that may include debentures, loans, deferred tax liabilities, and pension obligations
Long-term liabilities are obligations not due within the next 12 months or within the company’s operating cycle if it is longer than one year
It describes the characteristics of liabilities from an auditing perspective, and then goes on to describe the steps required to audit many types of liabilities, including accounts payable, accrued liabilities, and debt
There is a particular emphasis on the search for unrecorded liabilities
Liabilities of the business that are to be settled in cash
current liabilities are often understood as all liabilities of the business that are to be settled in cash within the fiscal year or the operating cycle of a given firm
Whichever period is longer.
Debt, bond, mortgage or loan
\nA fixed liability is a debt
BondMortgage or loan that is payable over a term exceeding one year.Such debts are better known as non-current liabilities or long-term liabilities.Debts or liabilities due within one year are known as current liabilities.
