LIA

Similar financial terms

Current Liabilities
The value of liabilities at the Balance sheet date that the company is required to settle (pay) either on demand, or within the next 12 months.

Contigent liabilities
Potential liabilities known about at the time a financial statement is prepared, which might or might not become actual liabilities in the future.

Unlimited liability
Full liability for the debt and other obligations of a legal entity. Generally, partners of a partnership and sole propietors have unlimited liability.

Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations not requiring interest payments that must be paid over a period of more than 1 year.

Modigliani and Miller Proposition II
A proposition by Modigliani and Miller which states that the cost of equity is a linear function of the firm's debt/equity-ratio.

Modigliani and Miller Proposition I
A proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition.

Long-term liabilities
Amount owed for leases, bond repayment and other items due after 1 year.

Limited-liability instrument
A security, such as a call option, in which the owner can only lose his initial investment.

Limited liability
Limitation of possible loss to what has already been invested.

Liability swap
An interest rate swap used to alter the cash flow characteristics of an institution's liabilities so as to provide a better match with its assets.

Liability funding strategies
Investment strategies that select assets so that cash flows will equal or exceed the client's obligations.

Liability
A financial obligation, or the cash outlay that must be made at a specific time to satisfy the contractual terms of such an obligation.

Contingent pension liability
Under ERISA, the firm is liable to the plan participants for up to 39% of the net worth of the firm.

Limited Liability Company (LLC)
Consists of member owners and a manager, at a minimum. Similar to a corporation that is taxed as a partnership or as an S-corporation. More specifically, it combines the more favorable characteristics of a corporation and a partnership. The LLC structure permits the complete pass-through of tax advantages and operational flexibility found in a partnership, operating in a corporate-style structure, with limited liability as provided by the state's laws.

Limited liability partnership (LLP)
A form of the LLC favored and used for professional associations, such as accountants and attorneys.

Limited liability limited partnership (LLLP)
Intended to protect the general partners from liability. Previously, the general partner was a corporation to protect the principals from personal liability. Under the LLLP, an individual could be a general partner and have limited personal liability.

Revenue Reconciliation Act of 1995
Proposed changes to the Internal Revenue Code affecting foreign trust reporting, among other changes.