A synonym for noncurrent liability; a liability that is not a current liability. By nature, it is a liability (financial obligation) that is not due for settlement within one year. An entity having such a liability on its balance sheet will not expect to pay/ settle it over the course of next 12 months. Rather, noncurrent liabilities would fall due in the long term, compared to current liabilities/ short-term liabilities, which fall due within one year. These liabilities are separately presented in an entity’s balance sheet, as a classification distinct from current liabilities. Examples of noncurrent liabilities include long-term portion of debt payable, long-term portion of bonds payable, long-term leases, and deferred tax liabilities.

Usually, investors and creditors inspect noncurrent liabilities to assess an entity’s solvency and leverage, among other aspects.