A fixed liability is a

debt Debt is an obligation that requires one party, the debtor, to pay money Loan, borrowed or otherwise withheld from another party, the creditor. Debt may be owed by a sovereign state or country, local government, company, or an individual. Co ...

, bond,

mortgage A mortgage loan or simply mortgage (), in civil law (legal system), civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners t ...

loan In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money. The document evidencing the deb ...

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.

Definition

According to ''Accounting Explained'', long-term liabilities are financial obligations of a company that are due after one year or longer. These types of liabilities are placed on a balance sheet of a company together with current liabilities that represent payments which are due within one year. It is important to differentiate between current and fixed liabilities on financial statements because it allows those using the statements to assess the strength of the business in both the short-term as well as the long-term, but separately. Information about current liabilities of a company alongside its current assets give crucial information about the liquidity of a company while fixed-liabilities given together with non-current assets tells the story of the company's long-term solvency.

Notes

Bonds (finance) Debt Liability (financial accounting) {{accounting-stub