Non-Interest-Bearing Current Liability – NIBCL

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Definition: Non-Interest-Bearing Current Liability – NIBCL

It is a time of liability in the form of debt, accounts payable, taxes or accrued expenses which must be paid within the current financial year of the company. This debt entry does not accrue interest.


For example:

• Current income taxes due to be paid at the year ending are non-interest based current liability

• Accounts payable which have no associated fee or interests


Nibcl are recorded under current liability section in the balance sheet of the company.


Nibcl is used to measure the amount of investment for that particular year. Total assets deducting non-interest bearing current liability gives the investment of that financial year which can be used to determine the residual income of the business.

 

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