Business Pitch Dictionary by pitch.dog
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.

Sources & evidence · 4

Direct term-level sources and supporting source families.