Excel Balance Sheet Template includes both current and non-current liabilities. The question we sometimes get is when a liability is current and also what are non-current ones? What companies and accountants are not struggling, but simply forget, is the simple proper classification. The rules are fairly simple and remembering them is worthwhile.<\/p>\n
So as a general rule, liabilities are shown on the balance sheet in two major groups. The condition for this classification is rather straightforward. If a liability is due to be paid in next 12 months, the liability is current. It\u2019s due to be paid in next financial year and hence should be labeled as \u201ccurrent\u201d. And as a result every other liability is non-current.<\/p>\n
This is simple right? There are some additional considerations that may be of help to you in classification of liabilities. If loans or overdrafts are tied with covenants, then in case of any breaches that result in a default meaning that the loans may be called to be fulfilled in full, the loans need to be classified as current ones although the agreed due date is later than 12 months.
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\nIn addition, if there\u2019s reason to believe that the payable amount needs to be paid off earlier than agreed the amount is recognized as current. And don\u2019t forget to present scheduled payments due in next 12 months as current ones. This is also something that is sometimes overlooked.<\/p>\n
The Excel Balance Sheet Template helps you in showing your liabilities but you yourself need to make the consideration and thought process through. Just think when the actual payment due is and whether the supplier or bank has the right to call for the amount due in earlier than previously agreed upon. This should get you just on track.<\/p>\n
Our Excel Balance Sheet Template has in the group non-current liabilities lines for borrowings, provisions and deferred tax liabilities so we\u2019re sure you\u2019ll find yourself a proper line to present your company\u2019s liabilities.<\/p>\n