Source and Destination Points
The difference between the first source point and the first destination point is the offset for the selected objects.
The difference in angle between the two source points and the two destination points is the rotation.
The ratio of the length between the two destination points to the length between the two source points is the change in scale.
Differences From Simple Transformation Settings
The Transform editing tool works very differently from the Simple Transformation settings in the Drawing Settings dialog box. The Simple Transformation settings temporarily adjust the position of objects as they are retrieved during the query process. AutoCAD Map 3D reverses these transformations during save back. The Transform editing tool permanently scales, moves, and rotates objects within the current drawing.