Consolidation is mainly a process of adding together the financial statement elements of a parent and its controlled subsidiaries with certain necessary adjustments. Discuss why the following items may require adjustments in preparing a consolidated balance sheet:

a. Investment in a subsidiary (on the parent’s balance sheet)

b. Shareholders’ equity (on the subsidiary’s balance sheet)

c. Accounts receivable

d. Accounts payable

e. Inventory

f. Goodwill g. Property, plant, and equipment?  LPO8