Ag questions answered by the Farm Financial Standards Council

By Stephanie Elsen

Professionals from the Farm Financial Standards Council are answering questions about ag financial matters (non-tax related). Here is a question recently submitted by Travis F. Thanks for submitting your question, Travis!


“My question pertains to the reporting of current and non-current portions of non-current liability on a balance sheet. Is a loan with monthly payments treated differently? That is, for a monthly-payment loan, does one still include only the upcoming 12 principal payments for said loan under current portion of non-current liability?”

Thanks, Travis F.


The current portion of a non-current liability (a debt with a repayment term longer than one year) is the amount of principal that is due to be repaid within 12 months of the date of the balance sheet. If the balance sheet is dated January 1st, 2014 then the current portion would be the principal due in 2014 regardless of the frequency of the payment (monthly, quarterly, etc.).

Farm Financial Standards Council

Click Here to Email Your Questions or email with a subject line of “Questions for the FFSC”. The FFSC will select questions to answer on this blog.