Skammtígsskyldum

Skammtígsskyldum is an Icelandic accounting term referring to the portion of a company’s liabilities that are due to be settled within one year from the balance sheet date. It corresponds to what is commonly called current or short-term liabilities in accounting. Liabilities that mature after one year are classified as long-term obligations.

Common examples of skammtígsskyldum include accounts payable to suppliers, short-term borrowings or bank facilities, the current portion of long-term debt, accrued expenses such as wages and interest, taxes payable, and other short-term obligations.

The classification of skammtígsskyldum is important for assessing liquidity and working capital. On the balance sheet, current liabilities are presented separately from long-term liabilities. They are used in liquidity metrics such as the current ratio (current assets divided by current liabilities) and the quick ratio.

Measurement typically follows the amounts due at the reporting date. In many accounting frameworks, current liabilities are recognized at their nominal value, unless discounts or special terms apply. If the expected settlement period changes, liabilities may be reclassified between short-term and long-term.

Terminology in Icelandic practice can vary. Skammtímaskuldir is a more common label for the same concept, but skammtígsskyldum may appear in some statements or guidance. Regardless of terminology, the concept denotes obligations that require payment within about twelve months, or within the operating cycle if longer, and is central to liquidity analysis in financial reporting.