What Are Noncurrent Liabilities?

Non-current liabilities are also called long-term liabilities. Refers to debts with a repayment period of more than one year. The main items of non-current liabilities are long-term loans, including long-term loans, bonds payable and long-term payables. Non-current liabilities are mainly generated by enterprises in order to raise funds required for long-term investment projects, such as medium- and long-term loans borrowed from banks to purchase large equipment.

Non-current liabilities

Right!

Non-current liabilities are also called long-term liabilities. Refers to debts with a repayment period of more than one year. The main items of non-current liabilities are long-term loans, including long-term loans, bonds payable and long-term payables. Non-current liabilities are mainly generated by enterprises in order to raise funds required for long-term investment projects, such as medium- and long-term loans borrowed from banks to purchase large equipment.

First, it can keep the original equity structure of the enterprise unchanged and the stock price stable;

Second, it does not affect the original shareholders' control over the enterprise;

Third, borrowing can increase shareholders' income;

Fourth, the interest paid on non-current liabilities is tax deductible.

First, borrowing of non-current liabilities may lead to a reduction in shareholder returns;

Second, the borrowing of non-current liabilities must be repaid in accordance with regulations;

Third, borrowing non-current liabilities may bring greater financial risks to the enterprise.

(1) Non-current liabilities are classified according to financing methods: long-term loans, bonds payable, long-term payables and special payables, etc .;

(2) Non-current liabilities are classified according to repayment and interest payment methods: non-current liabilities that are paid regularly and non-current liabilities that are paid by installments.