👉 Lagging, in accounting and finance, refers to an event or situation that has a negative impact on the financial performance of a company. This can be due to a change in market conditions, regulatory changes, operational issues, or other factors beyond the company's control. For example, if a company's revenue falls by 5% in the current year, but it is expected to recover over time, this lagging effect could cause significant financial losses for that period. Similarly, if a company
