What is right-of-use asset?
Under ASC 842, the lessee’s recognized right to use a leased asset over the term, initially measured based on the present value of the lease payments (the lease liability), adjusted for prepaid rent, incentives, and initial direct costs.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.