ROU Asset Rollforward
Category
Financial Reporting
An ROU asset rollforward is a reconciliation schedule showing the beginning balance, additions, amortization, impairments, modifications, and ending balance of right-of-use assets for a reporting period. Together with the lease liability rollforward, it provides a complete picture of lease balance sheet activity.
Why it matters
The ROU asset rollforward explains balance sheet changes from one period to the next. It captures new lease additions, periodic amortization, impairment charges, modification adjustments, and terminations. Auditors use it to verify that ROU asset balances are complete and accurately stated.
Under IFRS 16, a detailed ROU asset rollforward is a required disclosure. Under ASC 842, while not explicitly required, it is standard practice and expected by auditors.
How Arvexi handles this
Arvexi generates ROU asset rollforward schedules for any reporting period, aggregating activity across the entire portfolio. The schedule aligns with the lease liability rollforward to provide a complete, reconciled view of lease balance sheet activity.