What Is a Non-Interest-Bearing Current Liability (NIBCL)

As the name suggests, a non-interest-bearing current liability (NIBCL) is a category
of debt that an individual or a company must pay off within the calendar year--including
taxes and accounts payable, where the liabilities in question do not require interest payments to be made. On a balance sheet, NIBCLs are siloed under the liabilities column, specifically filed under the “current liabilities” section.

Understanding Non-Interest-Bearing Current Liability (NIBCL)

Non-interest-bearing current liabilities are straightforward. Unlike interest-bearing current
liabilities, such as working capital loans, or the current portion of long-term debt, non-interest-bearing liabilities are exempt from any interest a company may owe.

Example of a NIBCL

The Kroger Co. listed the following under Current Liabilities on its FY2017 balance sheet:

  1. Current portion of long-term debt including obligations under capital leases and financing obligations
  2. Trade accounts payable
  3. Accrued salaries and wages
  4. Deferred income taxes
  5. Other non-interest-bearing liabilities, which are typically not broken down in the Notes to the Financial Statements.