Learn in the textbookClassification of Assets and Liabilities
DefinitionNon-current liabilities (固定負債) are the liability category for debts that arise outside core business transactions and fall due more than one year after the balance sheet date.
ExplanationTypical examples are long-term borrowings (長期借入金), bonds (社債) that a company issues to borrow money from investors, and the provision for retirement benefits (退職給付引当金) set aside for employees' future retirement pay. Even for long-term borrowings, the portion due for repayment within one year of the balance sheet date is moved to current liabilities.
AnalogyLike a home loan repaid little by little over decades, a debt that takes many years to pay off.
Memory hookThe 債 in 社債 (bonds) means a promise to repay borrowed money. Promises repaid over a long period are lined up under non-current liabilities.