Non-current liabilities are long-term liabilities, which are financial obligations a company is due to settle over a period exceeding one year.

These liabilities are essential for assessing a company's financial health and ability to manage financial responsibility in the long run.

Non-current liabilities include Borrowings due in more than one year, lease obligations, debentures, and bonds payable.

For instance, Beta Company, which owns and operates an airline, uses bank borrowings to finance the acquisition of its airplanes.

The company can also issue corporate bonds for expansion activities, such as acquiring another airline or other capital investments.

It allows the company to spread the high cost of airplanes over many years, making fleet expansion and maintenance financially reasonable without requiring an immediate substantial cash investment.

High long-term debt can lead to financial pressure, as repayments of principal and interest can consume a large portion of future cash inflows.

Debt can further increase the pressure if the earnings of Beta Company are unstable.

Non-current liabilities are important for long-term corporate growth but require careful management.