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Assets, liabilities & equity · Working

Right-of-use asset

Also called: ROU asset

ELI5

An asset representing a lessee's right to use an underlying asset during a lease term.

Used in conversation

“The draft mentions right-of-use asset, but the scope and jurisdiction are still unclear.”

Pitch context

You will see “Right-of-use asset” in financial models, budgets, board packs and investor materials when the discussion reaches assets, liabilities & equity.

Why it matters: In assets, liabilities & equity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 4

Direct term-level sources and supporting source families.