{"id":315,"date":"2024-09-06T16:48:35","date_gmt":"2024-09-06T16:48:35","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/introduction-to-reporting-long-term-liabilities\/"},"modified":"2024-09-06T16:48:35","modified_gmt":"2024-09-06T16:48:35","slug":"introduction-to-reporting-long-term-liabilities","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/introduction-to-reporting-long-term-liabilities\/","title":{"raw":"Introduction to Reporting Long-Term Liabilities","rendered":"Introduction to Reporting Long-Term Liabilities"},"content":{"raw":"\n

What you will learn to do: Illustrate proper reporting of long-term liabilities<\/h2>\nYou may have noticed that, much like with assets, certain categories can include both non-current and current liabilities. In the assets section of the balance sheet, we saw that some investments could be current and some non-current. In the liabilities section, we see that long-term debt includes a current portion, and you can see that below on the liabilities section of the balance sheet for Ford Motor Company<\/a> for the fiscal year ended December 31, 2019.\n\nNotice, too, Ford presents their comparative report with the current year in the rightmost column, unlike many of the other companies we\u2019ve observed so far, that show the most current year in the leftmost column. GAAP doesn\u2019t go into that much detail in prescribing the presentation, but most companies show newest to oldest from left to right.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
FORD MOTOR COMPANY AND SUBSIDIARIES\nCONSOLIDATED BALANCE SHEETS\n(in millions)<\/caption>\n
Description <\/span><\/th>\nDecember 31, 2018<\/th>\nDecember 31, 2019<\/th>\n<\/tr>\n<\/thead>\n
Subcategory, <\/span>LIABILITIES<\/strong><\/td>\n<\/tr>\n
Payables<\/td>\n$     21,520<\/td>\n$     20,673<\/strong><\/td>\n<\/tr>\n
Other liabilities and deferred revenue (Note 17)<\/td>\n20,556<\/td>\n22,987<\/strong><\/td>\n<\/tr>\n
Automotive debt payable within one year (Note 20)<\/td>\n2,314<\/td>\n1,445<\/strong><\/td>\n<\/tr>\nFord Credit debt payable within one year (Note 20)<\/td>\n51,179<\/td>\n52,371<\/strong><\/td>\n\n
Other debt payable within one year (Note 20)<\/td>\n--<\/td>\n130<\/strong><\/td>\n<\/tr>\n
Liabilities held for sale (Note 24)<\/td>\n---<\/td>\n526<\/strong><\/td>\n<\/tr>\n
      Total current liabilities<\/strong><\/td>\nSingle line<\/span>\n95,569<\/td>\nSingle line<\/span>\n98,132<\/strong><\/td>\n<\/tr>\n
<\/td>\n<\/tr>\n
Other liabilities and deferred revenue (Note 17)<\/td>\n23,588<\/td>\n25,324<\/strong><\/td>\n<\/tr>\n
Automotive long-term debt (Note 20)<\/td>\n11,233<\/td>\n13,233<\/strong><\/td>\n<\/tr>\nFord Credit long-term debt (Note 20)<\/td>\n88,887<\/td>\n87,658<\/strong><\/td>\n\n
Other long-term debt (Note 20)<\/td>\n600<\/td>\n470<\/strong><\/td>\n<\/tr>\nDeferred income taxes (Note 7)<\/td>\n597<\/td>\n490<\/strong><\/td>\n\n
      Total liabilities<\/strong><\/td>\nSingle line<\/span>\n220,474<\/td>\nSingle line<\/span>\n225,307<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n \nAlso, notice that Ford makes reference to the footnotes for each line item of both current and non-current liabilities, and in this section, you\u2019ll be studying both the presentation of long-term debt and other liabilities and the disclosures that go with them.\n","rendered":"

What you will learn to do: Illustrate proper reporting of long-term liabilities<\/h2>\n

You may have noticed that, much like with assets, certain categories can include both non-current and current liabilities. In the assets section of the balance sheet, we saw that some investments could be current and some non-current. In the liabilities section, we see that long-term debt includes a current portion, and you can see that below on the liabilities section of the balance sheet for Ford Motor Company<\/a> for the fiscal year ended December 31, 2019.<\/p>\n

Notice, too, Ford presents their comparative report with the current year in the rightmost column, unlike many of the other companies we\u2019ve observed so far, that show the most current year in the leftmost column. GAAP doesn\u2019t go into that much detail in prescribing the presentation, but most companies show newest to oldest from left to right.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
FORD MOTOR COMPANY AND SUBSIDIARIES
\nCONSOLIDATED BALANCE SHEETS
\n(in millions)<\/caption>\n
Description <\/span><\/th>\nDecember 31, 2018<\/th>\nDecember 31, 2019<\/th>\n<\/tr>\n<\/thead>\n
Subcategory, <\/span>LIABILITIES<\/strong><\/td>\n<\/tr>\n
Payables<\/td>\n$     21,520<\/td>\n$     20,673<\/strong><\/td>\n<\/tr>\n
Other liabilities and deferred revenue (Note 17)<\/td>\n20,556<\/td>\n22,987<\/strong><\/td>\n<\/tr>\n
Automotive debt payable within one year (Note 20)<\/td>\n2,314<\/td>\n1,445<\/strong><\/td>\n<\/tr>\n<\/tbody>\n
Other debt payable within one year (Note 20)<\/td>\n—<\/td>\n130<\/strong><\/td>\n<\/tr>\n
Liabilities held for sale (Note 24)<\/td>\n—<\/td>\n526<\/strong><\/td>\n<\/tr>\n
      Total current liabilities<\/strong><\/td>\nSingle line<\/span>
\n95,569<\/td>\n		Single line<\/span>
\n98,132<\/strong><\/td>\n<\/tr>\n
<\/td>\n<\/tr>\n
Other liabilities and deferred revenue (Note 17)<\/td>\n23,588<\/td>\n25,324<\/strong><\/td>\n<\/tr>\n
Automotive long-term debt (Note 20)<\/td>\n11,233<\/td>\n13,233<\/strong><\/td>\n<\/tr>\n
Other long-term debt (Note 20)<\/td>\n600<\/td>\n470<\/strong><\/td>\n<\/tr>\n
      Total liabilities<\/strong><\/td>\nSingle line<\/span>
\n220,474<\/td>\n		Single line<\/span>
\n225,307<\/td>\n<\/tr>\n<\/table>\n

 
\nAlso, notice that Ford makes reference to the footnotes for each line item of both current and non-current liabilities, and in this section, you\u2019ll be studying both the presentation of long-term debt and other liabilities and the disclosures that go with them.<\/p>\n","protected":false},"author":6,"menu_order":15,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Reporting Long-Term Liabilities\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":300,"module-header":"","content_attributions":[{"type":"original","description":"Introduction to Reporting Long-Term Liabilities","author":"Joseph Cooke","organization":"Lumen Learning","url":"","project":"","license":"cc-by","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/315"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/users\/6"}],"version-history":[{"count":0,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/315\/revisions"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/parts\/300"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/315\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/media?parent=315"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=315"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/contributor?post=315"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/wp-json\/wp\/v2\/license?post=315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}