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Right-of-Use (ROU) Asset
A balance sheet asset required under ASC 842 representing a commercial tenant's contractual right to occupy physical real estate over a lease term.
A Right-of-Use (ROU) Asset is an accounting classification mandated under financial reporting standards ASC 842 and IFRS 16.
It requires commercial lessees to recognize an asset on their corporate balance sheet representing their contractual control over physical real estate, matched against a corresponding lease liability reflecting future rental payment obligations.
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