ACC 630 10-1 Journal

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Southern New Hampshire University *

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630

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Accounting

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Jul 2, 2024

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10-1 Journal Sharon Lipham Southern New Hampshire University ACC 630 Prof. Ed Kaplin May 5, 2024
Reflection Journal Concepts Consolidated Financial Reporting The first topic that relates to my position at my current employer is consolidated financial reporting. I work for a major insurance company in their accounting rotation program. This insurance company has a network of home insurance companies that vary based on location. Understanding consolidated financial statements and their importance to accounting assists with my daily tasks. “Consolidation accounting is suitable for assessing the real market position, assets, financial and income position by eliminating the internal relations of the groups of companies. Consolidated accounting can be classified as a tool that can be used to achieve the goal to explore and thus demonstrate the power and influence of the group” (Dienes & Bacs, n.d.). For greater transparency for investors, it is a promising idea to consolidate the financial statements. Thus, removing any internal issues from the financial statements. I agree with the statement by Dienes and Bacs because each subsidiary shares administration under the parent company. Potential investors will expect to see combined financial statements for all companies that are considered part of the parent company. To streamline the financial view for potential investors, all intercompany items are not included in the financial statements. Succession Planning Succession planning is generally viewed as a development process by companies that use it. “Succession planning can provide a long-term competitive advantage for companies in the energy industry. The key is investing the proper amount of time and attention to ensure that pivotal talent is identified and nurtured” (Hoffman & Womack, n.d.). With succession planning, when significant openings come about the company is prepared to fulfill the openings with
internal candidates that are skilled and experienced. The loss of an essential employee results in advanced career opportunities for exceptionally talented employees, which allows the company to continue in a more substantial pattern than previously (Hoffman & Womack, n.d.). Favorable succession planning programs generally call for guidance and effort from a variety of essential employees across the company. Human resources, management and supervisors, and senior management have a constant role to play in establishing and modifying talent and ensuring that succession actions are smoothly entrenched into the company. Establishing a succession plan is like the implementation of alternative crucial company initiatives that require focus on changes in management, communication, and developmental adjustments that must fervently be managed. The core competencies that are necessary for various crucial positions must be identified. Prevailing capabilities should be evaluated to establish educational and training contingencies that are necessary to fill the gaps. To be able to continue the current levels of success with the company, they will need to bring in talent for the future. They will need to start working sooner, rather than later (Hoffman & Womack, n.d.).
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References Dienes, A., & Bacs, B. A. (n.d.). Consolidated Financial Statements applying national and Inte . SEA - Practical Application of Science. https://ideas.repec.org/a/cmj/seapas/y2020i24p329-336.html Hoffman, T., & Womack, S. (n.d.). Succession planning: What is the cost of doing it poorly…or not at all? . PWC. https://www.google.com/url? sa=t&source=web&rct=j&opi=89978449&url=https://www.pwc.com/gx/en/oil-gas- energy/publications/pdfs/energy-company-succession- planning.pdf&ved=2ahUKEwjp5cqQ4PaFAxVf6ckDHRk2BDsQFnoECCgQAQ&usg=A OvVaw0HfkM_0AolD71E5czlxuDR