Legal analysis: Long-term liabilities, also known as non-current liabilities, are the contents of accounting entries, which refer to debts with a term exceeding 1 year, and long-term liabilities due within 1 year are included in the balance sheet as short-term liabilities. Compared with current liabilities, long-term liabilities have the characteristics of larger amount and longer repayment period. Therefore, borrowing long-term liabilities often comes with certain conditions. If an enterprise needs to designate an asset as collateral for repayment, it needs to designate a guarantor. Set up a sinking fund to protect the economic interests of creditors.
Legal basis: Article 25 of the Accounting Law of People's Republic of China (PRC). Companies and enterprises must confirm, measure and record assets, liabilities, owners' rights and interests, income, expenses, costs and profits according to the actual economic and business matters and the provisions of the unified national accounting system.