Non-Current Liabilities
Obligations due >12 months.
Formula
Non-Current Liabilities = Total Liabilities − Current Liabilities
Real World
When Elon Musk bought Twitter in 2022, the company took on billions in long-term bank loans — these appeared as non-current liabilities on the balance sheet because repayment extends beyond one year.
Exam Focus
Don't confuse non-current liabilities with current liabilities — always check if repayment is due within or beyond 12 months.
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