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Lease accounting is evolving rapidly, with trends for 2025 focusing on automation, sustainability, and real-time insights. Here’s what to expect...
Brooke Colglazier
Marketing Manager
When it comes to lease accounting, one term you’ll often encounter is the Right-of-Use (ROU) asset. Understanding what an ROU asset is and how to calculate its value is essential for businesses looking to stay compliant with lease accounting standards like ASC 842 and IFRS 16. In this article, we’ll dive into what an ROU asset is, its importance in lease accounting, and a step-by-step guide to calculating its value.
Brooke Colglazier
Marketing Manager
For businesses managing commercial leases, compliance with accounting standards is critical to staying on the right side of regulators and ensuring accurate financial reporting. Two major standards, ASC 842 and IFRS 16, have reshaped how companies handle lease accounting, requiring lessees to recognize lease liabilities and right-of-use (ROU) assets on the balance sheet. If you’re managing leases, especially in a multi-location business, understanding and complying with these standards is essential.
Brooke Colglazier
Marketing Manager