Practice Activity 4.5 Non-current and current liabilities

Give examples of non-current and current liabilities.

Suggested answers to practice activity 4.5

Non-current liabilities are amounts that become payable after one year. They are long-term liabilities. Examples are:

i. Loans and borrowings

ii. Employee benefits

iii.Provisions for other liabilities and charges

iv. Deferred tax liabilities

Current liabilities are amounts that become due within one year, using the reporting date as a baseline. Examples are:

i. Bank overdraft

ii. Loans and borrowings

iii.Trade and other payables

iv. Accruals for employee retirement benefits

v. Accruals for employee salaries

vi. Provisions for other liabilities and charges

vii.Other taxes

Think of more examples of non-current and current liabilities.