AASB 16 Leases supersedes AASB 117. Mandatory adoption of AASB 16 for reporting entities takes effect on 1 January 2019, although early adoption is permitted.

Company B, after learning other early adopters of AASB 16 in the same industry were favoured by independent equity research analysts, decided to adopt AASB 16 before 1 January 2019.

Which of the following theory or theories could explain Company B's accounting choice?

A. Institutional theory, coercive isomorphism

B. Stakeholders theory, normative branch

C. Legitimacy theory

D. Stakeholders theory, positive branch

E. Institutional theory, memetic isomorphism

Answer rating: 100% (QA)

In this case Company B has adopted Institutional theory memetic isomorphism for their accounting pol... View the full answer