Accounting treatment of TI and free rent under IFRS 16 / ASC 842.

  • Accounting treatment of TI and free rent under IFRS 16 / ASC 842.
  • Both IFRS 16 and ASC 842 require tenants to recognise lease incentives as a reduction to right-of-use asset and lease liability over the lease term.

Lease-incentive amortisation

Accounting · Global

Short definition

Accounting treatment of TI and free rent under IFRS 16 / ASC 842.

Full definition

Both IFRS 16 and ASC 842 require tenants to recognise lease incentives as a reduction to right-of-use asset and lease liability over the lease term. Affects reported earnings; coordinate with finance team early in lease drafting.

Why this matters for Class A leasing

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