\[
\text{Initial lease liability}
= \sum_{t=1}^{5}\frac{\$25{,}000}{(1.07)^t}
= \$25{,}000\left(\frac{1-(1.07)^{-5}}{0.07}\right)
= \boxed{\$102{,}504.94}
\]

With no applicable adjustments:

\[
\text{Initial ROU asset}=\text{Initial lease liability}
=\boxed{\$102{,}504.94}
\]

The governing accounting standard is **AASB 16 Leases**.