noncurrent liability

accounting

Written by

The Information Architects of Encyclopaedia Britannica

Last updated

July 1, 2026

Quick Summary

In accounting, a noncurrent liability, also known as a long-term liability, represents obligations that a company expects to pay off in more than one year. These are distinct from current liabilities, which are due within a short period, typically the next operating cycle.12

Noncurrent liabilities primarily consist of long-term debt, such as bonds payable, and obligations like employee pension plans. Lease financing can also be considered a form of intermediate-term financing, with obligations due in 1 to 15 years, and anything due in 15 or more years is classified as long-term debt. These liabilities are crucial components of a company's balance sheet, indicating future sacrifices of economic benefits.13

Summary created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

4 Britannica Sources

Ask Britannica AI about this topic

Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.

accounting
The balance sheet
…divided into current liabilities and noncurrent liabilities. Most amounts payable to the company’s suppliers (accounts payable), to employees (wages payable), or to governments (taxes payable) are included among the current liabilities. Noncurrent liabilities consist mainly of amounts payable to holders of the company’s long-term bonds and such items as obligations…
Read More
…divided into current liabilities and noncurrent liabilities. Most amounts payable to the company’s suppliers (accounts payable), to employees (wages payable), or to governments (taxes payable) are included among the current liabilities. Noncurrent liabilities consist mainly of amounts payable to holders of the company’s long-term bonds and such items as obligations…
Read More