Stable Liabilities

recurring liabilities and special-purpose funds appearing in the accounting records of socialist enterprises (associations) that correspond in use to the enterprise’s own working capital. Stable liabilities include the minimum indebtedness for wages payable, the deductions for social insurance, and the amount of money set aside to cover vacation pay and lumpsum awards for long, meritorious service. They also include the amounts in the amortization fund for capital repairs.

In sectors with long production cycles, such as shipbuilding and some types of machine building, stable liabilities include sums representing the indebtedness to the customers for current payments in portions. Enterprises receiving credit on the basis of turnover from the State Bank of the USSR include in their stable liabilities the sums withdrawn from their accounts from the time they are transferred to this type of crediting. In the financial plan of the enterprise, the growth in stable liabilities foreseen over a given period is regarded as a source of working capital.