Long-term liability is obligation that is payable in money, goods or services for a period in excess of one year. Usually a long-term liability will be reclassified as current near the end of its life. In other cases, the life of the liability may not be clearly known. In these cases, the classification is done on the best estimate of the expected life; current if less than one year and long-term if more than one year.
Three types of liabilities that could conceivably be long-term are notes payable, product warranties and returnable deposits. It should be noted that often notes payable will be long-term upon the signing of the notes. For professional singapore accounting services, we can be reached at our hotline 68174500 or alternatively, email us at firstname.lastname@example.org.