This document explains why spreadsheets are risky for lease accounting under ASC 842 and IFRS 16, citing errors, lack of controls, and inability to handle complexity. Real-world cases show issues like formula errors, missing audit trails, and challenges with managing incremental borrowing rates. Spreadsheets have design flaws, accounting weaknesses, and technology gaps, making them unsuitable for compliance and large portfolios. Enterprise-class Lease Lifecycle Automation systems are recommended to ensure accuracy, efficiency, and control, reducing risks, eliminating errors, and saving significant time.

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