Current liability
The portion of the lease liability due within 12 months of the balance sheet date.
Definition
The current portion of the lease liability represents the scheduled principal repayments due within the next 12 months. It is presented separately from the non-current portion on the balance sheet. The split is derived from the amortisation schedule.
Why it matters
Splitting the lease liability between current and non-current is required for balance sheet presentation. Finance teams often need to verify the split against their general ledger balances.
In AuditLease
AuditLease calculates and reports the current/non-current split in the period-end report and statutory note.
Related terms
Put this into practice with AuditLease
AuditLease handles IFRS 16 and FRS 102 lease calculations, statutory note generation, journal entries, and audit evidence — so your team spends less time on spreadsheets and more time on judgements.
This definition is for general information only and is not accounting or legal advice. Definitions are based on IFRS 16, FRS 102, and associated guidance published by the IFRS Foundation and the Financial Reporting Council. Users should refer to the applicable accounting standards and their professional advisers for judgement-specific matters.