---
title: "ASC 842 — Class A Atlas glossary"
description: "US GAAP equivalent of IFRS 16 — on-balance-sheet lease recognition."
canonical: https://classa.info/glossary/asc-842
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

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

## TL;DR

- 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](/glossary/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](/glossary/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](/topics/cross-border-expansion) occupiers can translate quickly.

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Citation: Source: Class A Atlas (https://classa.info/glossary/asc-842), updated 2026-04-01T00:00:00.000Z.