---
title: "IFRS 16 — Class A Atlas glossary"
description: "International accounting standard requiring on-balance-sheet lease recognition."
canonical: https://classa.info/glossary/ifrs-16
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> International accounting standard requiring on-balance-sheet lease recognition.

## TL;DR

- International accounting standard requiring on-balance-sheet lease recognition.
- Effective 2019.

# IFRS 16

*Accounting · Global*

## Short definition

International accounting standard requiring on-balance-sheet lease recognition.

## Full definition

Effective 2019. Tenants recognise a right-of-use asset and a [lease liability](/glossary/lease-liability) for nearly all leases. Materially affects EBITDA, leverage ratios, and ROIC for tenant-occupier businesses with large real-estate portfolios.

## Why this matters for Class A leasing

IFRS 16 is part of the accounting vocabulary that institutional [Class A](/glossary/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](/topics/cross-border-expansion) occupiers can translate quickly.

---

Citation: Source: Class A Atlas (https://classa.info/glossary/ifrs-16), updated 2026-04-01T00:00:00.000Z.