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An Indirect Effect of an Accounting Change Is Any Change

question 86

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An indirect effect of an accounting change is any change to current or future cash flows of a company that result from making a change in accounting principle that is applied retrospectively.


Definitions:

Vertical Transfer

The process of applying knowledge or skills acquired in one context to different or higher-level tasks and situations.

Performance Deterioration

A decline or reduction in the efficiency, quality, or effectiveness of an individual's or group's work performance over time.

Motivation To Transfer

The level of an individual's intention or desire to apply the skills and knowledge gained from training back to their job or daily activities.

Cognitive Ability

The capacity to perform higher mental processes of reasoning, remembering, understanding, problem-solving, and decision-making.

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