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Describe the mechanistic hypothesis

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Zippy Ltd has a lot of off-balance sheet leases which were previously disclosed in the notes. The leases will be recognised in Zippy Ltd's financial statements for the year ended 30 June 2020 in accordance with AASB 16 Leases. This will increase assets and liabilities. It will also increase expenses in 2020 and 2021, compared with what would have been reported under the previous accounting standard.

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problem 1: Describe the mechanistic hypothesis. According to the mechanistic hypothesis, how will the adoption of AASB 16 Leases affect Zippy Ltd's share price?

Reference no: EM132767177

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