Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 37

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 answer the following questions:
Under what circumstances should a firm recognize an asset acquired or a liability assumed in a business combination that arises from a contingency