Passiva

Liabilities constitute the counterpart to assets on the balance sheet of a company or legal entity. They include, among other things, equity, long-term debts and short-term obligations. Under Dutch law, liabilities play a significant role in assessing the financial position, for example in annual accounts, compositions with creditors and bankruptcy proceedings.

The accurate presentation of liabilities is essential to enable creditors, shareholders and supervisory authorities to obtain insight into a company’s obligations. In practice, the ratio between assets and liabilities is frequently analysed to determine the solvency and continuity of an enterprise.