Other Deferred Liabilities

A deferred liability is an obligation for which payment is not due until later. If the deferral is for more than one year, the liability is classed as a long-term liability on an entity’s balance sheet.

Deferred revenues are not shown on the income statement since they are not considered revenue until they are earned. Instead, they are recorded as a liability on the balance sheet. As revenue is earned, the obligation is reduced, and income is recorded