Expert: Arthur Naman - 12/21/2009

Question
Good day.
afi, i put Deferred Tax Liabilities-Current in our year ended account, after auditor checked, they re-classified it as Deferred Tax Liabilities-Non Current. Do you know what's the different between current & non current ? What's the meaning also ?

Answer
The difference between "current" and "long term" is generally whether or not the liability is expected to be paid off within a year. If so, that liability is a short-term, or current, liability. If longer than a year, it is non-current.

Accordingly, I presume that the deferred liability is something that is expected to be paid off beyond a year.