Additionally, add the separate values ​​of the parent company and subsidiary income statements. Step 10 – Review consolidated statements for duplicate values. For example, an individual must review and verify, but not limited to, intercompany shares, which means that the consolidated company owns parts of itself, he must also verify intercompany receivables and payables, which means that the company owes itself money, and they also need to check for intercompany sales, which means the company is selling items to itself for profit. Step 11 - Eliminate intercompany inventory holdings, which arise from shares owned by the subsidiary owned by the parent company and which are not reported as outstanding shares on the consolidated statement. Additionally, for consolidated balance sheet adjustments, an individual must debit the subsidiary's common stock, retained earnings, and additional paid-up capital. In addition, they must credit the consolidated inventory of the subsidiary's account with the carrying amount of the intercompany assets.