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Liabilities and shareholders equity Liabilities Due to banks Due to customers Derivatives financial instruments Other loans

what is the short term liabilities here

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Answer #1

In the given question,

Short term liabilities[current liabilities are firms obligations which are expected to be payed off within one year ] are stated as follows;;

-Current income tax liability/obligation,

-payable dividend (which are declared by company have to pay within one year),

-other provisions (basically treated as short term/current liability),

-pension benefits liability is also current liability,

-Derivative Financial instruments also be treated as current liability unless they form part of hedging relationship.

But remaining items like

-Due to banks and customers,

-Other loans and liabilities

Based on the short term in nature only we have to treat them as current liabilities, otherwise treat them as non current liabilities.

Thank you:-)

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