# Right-of-use asset

> Right-of-use asset — The lessee's right to use an underlying asset for the lease term — the lease liability plus prepaid lease payments and initial direct costs, less incentives received.

Source: https://lopifi.com/glossary/right-of-use-asset
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is right-of-use asset?** In accounting, right-of-use asset means the lessee's right to use an underlying asset for the lease term — the lease liability plus prepaid lease payments and initial direct costs, less incentives received.

## Also known as

- ROU asset

## Words this system refuses for it

- leased asset (owned by the lessor)

- **Category:** Fixed assets & leases
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Rendered by:** [lease-schedule](https://lopifi.com/md/components/lease-schedule)
- **Related:** lease-liability, liability, asset