What is prepaid rent?

Prepaid Rent is a payment made related to a lease that pertains to a future period. To include this within the measurement process, the payment must have happened before the lease commencement date. 

For instance, if you paid first month's rent as of the lease execution date and gained access to the asset 3 months later, the first month rent you paid at the lease execution date would be considered in the initial lease measurement. 

Prepaid rent increases the ROU Asset at the commencement date.