On April 1, 2009, The Dow Chemical Company completed its acquisition of Rohm and Haas Company. Dow
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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?
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Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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