---
title: "Right-of-use asset (ROU) — Class A Atlas glossary"
description: "Balance-sheet asset representing the tenant's right to use leased space."
canonical: https://classa.info/glossary/right-of-use-asset
pageType: glossary
lastUpdated: 2026-04-01T00:00:00.000Z
license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)."
---

> Balance-sheet asset representing the tenant's right to use leased space.

## TL;DR

- Balance-sheet asset representing the tenant's right to use leased space.
- Recognised under IFRS 16 / ASC 842 at lease commencement.

# Right-of-use asset (ROU)

*Accounting · Global*

## Short definition

Balance-sheet asset representing the tenant's right to use leased space.

## Full definition

Recognised under [IFRS 16](/glossary/ifrs-16) / [ASC 842](/glossary/asc-842) at lease commencement. Equals the [lease liability](/glossary/lease-liability) plus any prepaid rent, minus any lease incentives received. Amortised over the lease term.

## Why this matters for Class A leasing

Right-of-use asset (ROU) 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.

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Citation: Source: Class A Atlas (https://classa.info/glossary/right-of-use-asset), updated 2026-04-01T00:00:00.000Z.