On April 1, 2009, The Dow Chemical Company completed its acquisition of Rohm and Haas Company. Dow Chemical paid $15,681 million cash consideration to Rohm and Haas stockholders in exchange for their ownership shares. Rohm and Haas continued as a wholly owned subsidiary of Dow Chemical.
Refer to Dow Chemical's 2009 second-quarter report, as well as related GAAP, to compose a prompt to the following questions:
1.Did Dow Chemical recognize any acquired contingencies for its acquisition of Rohm and Haas? If it did, how were they measured? If not, why not?
2.Under what circumstances should a firm recognize an asset acquired or a liability assumed in a business combination that arises from a
contingency?
3. How should Dow Chemical account for its acquired contingencies in periods after the acquisition date
4. What is the disclosure requirement for Dow Chemical's acquired contingencies?
5. What are some potential concerns with authoritative accounting literature for acquired contingencies?