Liabilities

1. Financial reporting - balance sheet.

In financial reporting, liabilities are amounts or obligations of a reporting entity arising from past transactions or events, the settlement of which may result in:

• The transfer or use of assets, for example payments of money
• The provision of services or
• Other yielding of economic benefits in the future.

Examples include overdrafts, trade payables, accruals and provisions.

Liabilities are represented in the balance sheet by credit balances.

2. Lending - borrowing.

More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).

See also

• Accrual
• Assets
• Balance sheet
• Capital
• Compound instrument
• Credit balance
• Disaggregation
• Equity
• Exemption clause
• Fair value
• Financial liability
• Financial reporting
• Indemnity clause
• Interest gap
• Liabilities and equity
• Mismatch
• Net assets
• Net worth
• Off balance sheet finance
• Offset
• Overdraft
• Provision
• Reporting entity
• Trade payables