What are short-term and long-term liabilities. What is included in the company's long-term and short-term liabilities

P3 Long-term liabilities are obligations for which payments must be made within a period exceeding 12 months.

Obviously, this will include everyone (summary of Section 4).

Accordingly, if these items are removed from short-term liabilities, the value of the indicator will change. But you can only take out one of these indicators or not take out any articles at all.

The fact is that reserves for future expenses and payments (estimated liabilities) in any case relate to short-term liabilities. And authors who write differently are mistaken.

As for deferred income, they are received now and relate to future periods. Therefore, in fact, they have both a short-term and long-term nature.

Therefore, from the point of view of financial management, it makes sense to classify future income as long-term liabilities, and leave reserves for future expenses and payments (estimated liabilities) as short-term liabilities.

If you see any inaccuracy or typo, please also indicate this in the comment. I try to write as simply as possible, but if something is still not clear, questions and clarifications can be written in the comments to any article on the site.

Best regards, Alexander Krylov,

The financial analysis:

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Attracting external capital to solve current production problems is a fairly common practice among many enterprises and organizations. One of the additional (external) sources of funds are long-term liabilities. They differ from short-term liabilities in terms of repayment period - for the former it is less than 12 months, for the latter it is more than one year.

Long-term liabilities include various debt obligations of organizations for loans, credits and deferred tax liabilities.

At the same time, tax liabilities classified as long-term liabilities must also be for a period of more than one year (if taxes are paid, for example, every quarter, such liabilities are short-term). Long-term liabilities may include companies' deferred income tax liabilities.

The essence of long-term commitment

The presence of long-term liabilities is not always a negative factor; the reason for this is the ongoing inflationary processes. The fact is that the actual value of funds may differ at the time of receipt and at the time of return. So, a million rubles today and seven or eight years ago are completely different money.

Thus, long-term liabilities are often equated to companies' own funds, especially if they are taken out at a minimal interest rate, or without it at all.

It is for this reason that many organizations prefer to raise funds in the form of long-term debt, minimizing the use of equity and short-term loans. Agree that raising funds at a small interest rate, organizing the organization’s work and repaying the debt in a few years using your own working resources is a rather attractive prospect.

Of course, in some cases, under the influence of unfavorable factors, a decrease in profitability may be observed - profit may be less than the amount of interest payments on long-term obligations. It all depends on the individual circumstances in which organizations operate.

Types of long-term liabilities

The main long-term liabilities include:

• bills with a maturity of more than one year;
• loans and borrowings with a repayment period of more than one year;
• bonds issued for a period of more than one year;
• deferred tax liabilities;
• future costs and payments and other expenses.

When assessing the solvency of an organization, all existing long-term liabilities are usually divided into two categories: part of the long-term debt, which must be repaid before the expiration of one year after the reporting date, and part of the long-term debt, which must be repaid after the expiration of one year after the reporting date.

Features of accounting for long-term liabilities

Abroad, long-term liabilities include issued mortgages, as well as obligations regarding pension payments to employees. Since the latter is not practiced in Russia, and mortgages, in fact, are the same loans obtained against real assets, there is no item regarding obligations for pension payments in our balance sheet, and mortgages are accounted for as part of loans and credits.

A distinctive feature of long-term liabilities is that organizations pay creditors not only the amount of debts, but also interest for the use of loans.

Based on this, long-term liabilities are reflected on the organization’s balance sheet in the amount of their reimbursement (necessary to cover them), taking into account payment for credit services (accrued interest, discounts, etc.).

Example of using long-term liabilities

Let's look at how long-term liabilities work using a simple example. Let's say an entrepreneur decides to organize a business related to cargo transportation. He prepares the necessary documents, contributes the minimum starting capital, for example, 10 thousand rubles, and gets to work.

First of all, he takes out a long-term loan at low interest, say, for 10 years, to purchase a truck, which remains pledged to the bank. Within ten years, the car generates a profit that allows you not only to repay the loan, but also to buy a new car.

The funds received can be spent on purchasing a new truck, since the old one has become unusable in ten years, or you can distribute the money at your own discretion by taking out another long-term loan to purchase a vehicle. Thus, by investing a minimum amount of funds at the very beginning of work, with the help of long-term obligations you can receive a profit amounting to millions of rubles.

long term duties represent obligations with a maturity period exceeding 12 months. Long-term liabilities are the organization's debt on loans and borrowings. Long-term liabilities also include deferred tax liabilities. When assessing the financial condition of an organization that has long-term borrowings, it cannot be said that their presence is negative. In addition, long-term liabilities can be equated to equity. Also, taking into account inflationary processes, we can assume that the presence of long-term liabilities is a beneficial factor for the organization, since their real value at the time of receipt differs significantly from the value at the time of payment.

Types of long-term liabilities

• loans and borrowings with a repayment period exceeding 12 months;
• bills issued with a maturity exceeding 12 months;
• bonds issued for a period of more than 12 months;
• deferred tax liabilities.

Long-term loans to banks are issued for the purchase of investment assets, for replenishing working capital or for repaying current liabilities.

If taxes, for example, income tax, are paid more than once a year (in the quarterly, semi-annual, etc. balance sheet), then it would be incorrect to call such obligations long-term. In this case, tax amounts are transferred to the current liabilities section).

When assessing the financial condition of an enterprise, long-term liabilities are usually divided into two groups:

1. part of long-term accounts payable that will be repaid more than 12 months after the reporting date;
2. part of long-term accounts payable that will be repaid before the expiration of the next 12 months after the reporting date.

To account for settlements of obligations. The chart of accounts provides for the following accounts: 50 “Long-term loans”, 51 “Long-term bills issued”, 52 “Long-term obligations on bonds”, 53 “State agreements and lease obligations”, 55 “Other long-term liabilities”, 60 “Short-term loans”, 61 "Current debt on long-term liabilities"; 63 "Settlements with suppliers and contractors"; 64 "Calculations for taxes and payments"; 65 "Insurance settlements"; 66 "Calculations for employee benefits"; 67 "Settlements with participants"; 68 "Settlements for other operations; Rozrahunki for payments to healthcare workers"; 67 "Rozrahunki with participants"; 68 "Responsibility for other operations."

These accounts record liabilities, which are understood as the debt of the enterprise, which arose as a result of past events and the repayment of which is expected to lead to a decrease in the resources in the enterprise, embodying economic benefits.

What terms are used to define obligations?

The terms used to define the methodological basis for the formation of information about liabilities in accounting and its disclosure in financial statements are defined. P (S). BU 11 "obligations" have this meaning.

Collateral - an obligation with an uncertain amount or maturity at the balance sheet date

A contingency liability is:

1) an obligation that may arise as a result of past events and the existence of which will be confirmed only when one or more uncertain future events over which the company does not have complete control occur or do not occur; ab

2) a present obligation that arises from past events but is not recognized because it is unlikely that resources that embody economies will be required to settle the obligation. Ichne benefits, or because the amount of the obligation cannot be reliably determined.

Onerous contract - a contract whose costs (which cannot be avoided) exceed the expected economic benefits from this contract

Settlement amount is the undiscounted amount of cash or cash equivalents that is expected to be paid to settle a liability in the ordinary course of business of the entity.

Present value is the discounted amount of future payments (less the amount of expected recovery) that is expected to be required to settle the liability in the ordinary course of business and enterprise.

How are obligations divided?

For accounting purposes, liabilities are divided into: - long-term;

Current;

Security;

Contingent liabilities;

revenue of the future periods

What are long-term liabilities?

Long-term liabilities include:

Long-term bank loans;

Other long-term financial liabilities;

Deferred tax liabilities;

Other long-term liabilities

A liability that bears interest and is due to be settled within twelve months from the balance sheet date should be treated as a long-term liability if the original maturity date is greater than twelve months and an agreement exists to convert the liability into a long-term liability before the financial statements are approved.

A long-term obligation under a credit agreement (if the agreement provides for the repayment of the obligation at the request of the creditor (lender) in the event of violation of certain conditions related to the financial condition of the borrower a), the terms of which are violated, is considered long-term if

The lender, before the approval of the financial statements, agreed not to demand repayment of the obligation due to the violation;

No further breaches of the loan agreement are expected to occur for a period of twelve months from the date

Long-term liabilities on which interest accrues are reflected in the balance sheet at their present value. Determination of present value depends on the conditions and type of obligation

What are current liabilities?

Current liabilities include: - short-term bank loans; - current debt on long-term liabilities;

Short-term bills issued;

Accounts payable for goods, works, services;

Current debt for settlements for advances received, for settlements with the budget, for settlements for extra-budgetary payments, for insurance settlements, for settlements for wages, for settlements with participants, for settlements for internal settlements

Other current obligations

Current liabilities are reflected in the balance sheet at the repayment amount

Collateral is created to reimburse the following (future) operating expenses; characteristics and accounting will be discussed in Chapter 4. Part 3 “Accounting for equity capital and collateral obliges niyazan.”

Contingent liabilities are reflected in off-balance sheet accounts and will be discussed in section 6 of part 4 “Accounting for off-balance sheet accounts11

What types of estimates are used to determine the carrying amount of liabilities?

The following types of estimates are used to determine the carrying amount of liabilities:

Historical cost;

Current cost;

Cost of repayment (calculation, payment)

The historical cost of a liability is the amount of cash or cash equivalents that is expected to be paid to repay the debt in the ordinary course of business.

Current cost of liabilities is the undiscounted amount of cash or cash equivalents required to pay off liabilities at the current time

Settlement cost is the undiscounted amount of cash or cash equivalents that is expected to be paid to settle liabilities in the ordinary course of business of the entity.

Section IV of the balance sheet consists of five lines. This section should reflect information about the organization’s obligations with a maturity period of more than 12 months after the reporting date. The lines of Section IV, in particular, reflect the amount of borrowed funds raised for a long term, the amount of deferred tax and valuation liabilities of the company, and the amount of other long-term liabilities.

Let's consider the order of filling out each of these lines in more detail.

Line 1410 “Borrowed funds”

On line 1410 you need to provide data on all long-term loans and borrowings attracted by the organization for a period of more than 12 months. This reflects the amount of loans received both in cash and in kind, bank loans, and the company’s obligations under issued financial bills. Here, both the principal amount of the loan (credit) and the amount of interest accrued on it under the terms of the agreement are taken into account.

Attention!

Line 1410 does not indicate the amount of obligations on commercial bills (that is, securities issued as security for previously delivered material assets). Such obligations are reflected in the organization's accounts payable (lines 1450 or 1520 of the balance sheet).

In line 1410 enter the credit balance of account 67 “Calculations for long-term loans and borrowings”. Moreover, this is done only in relation to debt whose repayment period exceeds 12 months after December 31.

Line 1420 “Deferred tax liabilities”

The procedure for filling out line 1420 is similar to the procedure for filling out line 1180 of the balance sheet asset. Thus, line 1420 is filled out by companies that apply PBU 18/02. That is, small enterprises that have refused to use this document may not fill out this line.

To complete line 1420, take the credit balance of account 77, “Deferred tax liabilities.” This rule applies if the company reflects the amount of deferred tax liabilities in detail. At the same time, you have the opportunity to reflect deferred assets and liabilities on a net basis. That is, depending on what difference arose between the debit of account 09 “Deferred tax assets” and the credit of account 77. If this difference is positive (debit 09 is greater than credit 77), fill out only line 1180 of the balance sheet asset. Put a dash in line 1420. If the indicator for the credit of account 77 turns out to be greater than the indicator for the debit of account 09, fill out only line 1420 of the balance sheet. And in line 1180 put a dash.

Line 1430 “Estimated liabilities”

Line 1430 reflects the amount of reserves that were formed in accordance with PBU 8/2010. For example, for warranty repairs or payment of upcoming costs for land reclamation and other environmental measures. This line should reflect information only about long-term estimated liabilities.

Line 1430 reflects the credit balance of account 96 “Reserves for future expenses” (in terms of obligations with a maturity period of more than 12 months) not written off as of December 31 of the reporting year.

Line 1450 “Other obligations”

In line 1450, show information about other long-term liabilities that were not reflected above in the lines of section IV. In particular, in line 1450 you can reflect information about accounts payable to suppliers and contractors with a repayment period of more than 12 months. Or data on targeted financing (account credit 86 “Targeted financing”) provided for a period exceeding 12 months after the reporting date.