The 2008 annual report for Zimmer Cable included the following information on a change in the procedure

Question:

The 2008 annual report for Zimmer Cable included the following information on a change in the procedure for amortizing its investment in pay-TV programming:

In the first quarter of 2008, the Company changed the rate of amortization of its pay-TV programming costs to more closely reflect audience viewing patterns. The effect of this change was to reduce programming costs by $58 million and $57 million, resulting in increased net income of $35 million and $31 million, or $0.58 per share and $0.49 per share, during 2008 and 2007, respectively.

Required:
1. Indicate which would be affected by this change.
2. Explain whether you would expect this change in amortization policy to affect the accounts by a larger or smaller amount in future years and why.

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