US GAAP equivalent of IFRS 16 — on-balance-sheet lease recognition.

  • US GAAP equivalent of IFRS 16 — on-balance-sheet lease recognition.
  • Effective 2019.

ASC 842

Accounting · US

Short definition

US GAAP equivalent of IFRS 16 — on-balance-sheet lease recognition.

Full definition

Effective 2019. Similar to IFRS 16 but with operating-lease vs finance-lease distinction preserved. Operating leases recognise straight-line lease expense; finance leases bifurcate into interest and amortisation.

Why this matters for Class A leasing

ASC 842 is part of the accounting vocabulary that institutional Class A occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so cross-border occupiers can translate quickly.