Financial Statement Presentation

Learning Outcomes

  • Report non-current liabilities on the balance sheet

You can probably see some of the inter-relationships between current and non-current liabilities. The most notable is that long-term debt includes a current portion that has to be split out on the face of the financial statements. It is usually entitled “current portion of long-term debt”, but on the Ford Motor Company balance sheet, it is conveniently called “debt payable within one year” and is detailed in Note 20.

In addition, note the amount of $25.324 billion reported as “Other liabilities and deferred revenue: is detailed in Note 17 (along with details of the current other liabilities of $22.987 billion):

See caption for link to long description.

See the note long description here.

The Pension and OPEB (other post-employment benefits, such as health insurance) are long-term liabilities because they represent the present value of the future payments to employees who have or will retire and qualify for company benefits.

On the income statement, for finance leases, interest on the finance right-of-use liability and amortization (depreciation) on the finance right-of-use asset are presented in the same manner as the entity presents all other interest and depreciation expenses on similar assets. For operating leases, lease expense is included in the operating expenses.

Practice Question