---
title: "Lease-incentive amortisation — Class A Atlas glossary"
description: "Accounting treatment of TI and free rent under IFRS 16 / ASC 842."
canonical: https://classa.info/glossary/lease-incentive-amortisation
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

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

## 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.

# Lease-incentive amortisation

*Accounting · Global*

## Short definition

Accounting treatment of TI and free rent under [IFRS 16](/glossary/ifrs-16) / [ASC 842](/glossary/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](/glossary/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](/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/lease-incentive-amortisation), updated 2026-04-01T00:00:00.000Z.