Current Liabilities

Current liabilities are those to be settled within the entity's normal operating cycle or due within 12 months, or those held for trading, or those for which the entity does not have an unconditional right to defer payment beyond 12 months. Other liabilities are non-current liabilities.

An entity shall classify a liability as current when (IAS 1 p.69):

• it expects to settle the liability in its normal operating cycle;
• it holds the liability primarily for the purpose of trading;
• the liability is due to be settled within twelve months after the reporting period; or
• it does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Current liabilities include (according to the IFRS):

• Current provisions for employee benefits
• Other short-term provisions
• Trade and other current payables
• Current tax liabilities
• Other current financial liabilities
• Other current non-financial liabilities
• Current liabilities other than liabilities included in disposal groups classified as held for sale
• Liabilities included in disposal groups classified as held for sale

Current liabilities often referred as short-terms debts.

One of the most important applications of the current liabilities indicator is in the current ratio, quick ratio and cash ratio formulas (liquidity analysis).

IFRS Taxonomy (XBRL) reference for non-current assets is "CurrentLiabilities".