Balance-sheet liability for the present value of future lease payments.

  • Balance-sheet liability for the present value of future lease payments.
  • Recognised under IFRS 16 / ASC 842.

Lease liability

Accounting · Global

Short definition

Balance-sheet liability for the present value of future lease payments.

Full definition

Recognised under IFRS 16 / ASC 842. Discounted at the lessee's incremental borrowing rate. Reduces over the lease term as payments are made.

Why this matters for Class A leasing

Lease liability 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.