It stands for long-term liability; debts (liabilities) an entity owes creditors and other third-party market participants, that mature- i.e., are payable, beyond a term of one year (or the normal operation period of the entity). On the balance sheet (statement of financial position), long-term financial liabilities and obligations are presented under the broader category of liabilities, ordered next to current liabilities (which an entity must pay/ settle/ extinguish within 12 months). The normal operation period is the amount of time an entity, like a manufacturing company, would need to complete a full production cycle (turning inventory into revenues/ income).
The key types of non-current liabilities include “long-term” notes payable and bonds payable.
Long-term liabilities are also known as non-current liabilities.
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