2.2 Liabilities

Introduction

Liabilities are the obligations of a company from past events which expected to have outflow of economic benefits from the company in the future.  There are two main types of liabilities:

2.1.1)           Current Liability

2.1.2)           Non Current Liability

2.2.1               Current Liabilities

Current liabilities are the liabilities held by the company which has obligations to be settled within one year or one business cycle, whichever is greater. However IFRS allowed operating items such as payable to employees, trade payable and etc to be classified as current liabilities even though they will be settled more than one years. Current liabilities are as follows:

2.2.1.1                   Trade Payable

2.2.1.2                   Short Term Borrowing

2.2.1.3                   Current Tax Payable

2.2.2               Non Current Liabilities

Non current liabilities are the liabilities not expected to be settled within one year or one business cycle, whichever is greater. Non current liabilities included financial liabilities that provide financing at long term basis. Non Current liabilities are as follows:

2.2.2.1                   Long Term Borrowing

2.2.2.2                   Defer Tax Liabilities

2.2.2.3                   Financial Lease Obligations

2.2.2.4                   Retire Benefit Obligations

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