Non-current liability
Non-current liability: an obligation a business does not expect to settle within twelve months of the balance sheet date — long-term loans, bonds payable or lease liabilities due beyond a year.
FrameworkIAS 1
See it move
A company takes out a €200,000 bank loan, repayable in five equal annual instalments. The instalment due within the next twelve months, €200,000 ÷ 5 = €40,000, is reclassified as a current liability, and the remaining €200,000 − €40,000 = €160,000 stays as a non-current liability at the balance sheet date.
Check yourself
A company has a bank loan of €450,000 repayable in nine equal annual instalments starting next year, a bond payable of €120,000 due in three years, and trade payables of €30,000 due within a month. What is the total non-current liability shown on the balance sheet?