What are asset classes?

In lease accounting, leased assets fall under PP&E (property, plant, and equipment). So, a selection of asset classes can include land, buildings, machinery, equipment, furniture and fixtures, as well as hardware like servers, computers, printers, etc.

The term/concept represents the unit of account for several significant accounting policy elections within the new lease standard. 

An example of an accounting policy election available by class of assets would be the ability to use the risk-free rate as the discount rate for certain classes of assets as opposed to the incremental borrowing rate which can be time consuming and costly to calculate (only available for non-public entities).

For how to apply asset classes in Occupier, refer to this article.