# Lease-incentive amortisation

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

**Canonical URL:** https://classa.info/glossary/lease-incentive-amortisation
**Page type:** glossary
**Last updated:** 2026-04-01T00:00:00.000Z
**License:** CC BY 4.0 with attribution to Class A Atlas (https://classa.info).

## TL;DR
- 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.

## Key facts
- **category**: Accounting
- **regionScope**: Global

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Citation: Source: Class A Atlas (https://classa.info/glossary/lease-incentive-amortisation), updated 2026-04-01T00:00:00.000Z.