Liabilities – Firms obligations

Financial obligations that the company must fulfill in the future

Current Liability -paid within 1 year or operating cycle

• Account payable
• wage, rent payable
• Short-term notes payable- usually with explicit interest
• dividend payable- declared but not yet paid
• current portion of long term debt- to be paid in 1 year
• taxes payable
• unearned revenue – revenue items in future income statement
  
  Noncurrent liabilities (Long term liability)
• Not paid in 1 year, valued at present value of all future payments
• The liabilities that do not meet the criteria for current liabilities
• Long term debt - such as bonds, mortgage, lease
• Pension, other post-retirement benefit (eg life insurance / health care)
• Deferred taxe liabilities
• If include balance sheet accounts of a subsidiary that is 100% owned, report a minority interest in its consolidated balance sheet, which is the pro-rata share of the subsidiary’s net assets (equity) not owned by the parent company.
• Under IFRS, report minority interest in the equity section.
• Under US GAAP, report minority interest in liabilities section, equity section or section located between liabilities and equity.