Dow Chemical 2009 Annual Report Download - page 120

Table of Contents
In accordance with the new guidance on noncontrolling interests, the Company revised all previous references to “minority interests” in the consolidated
financial statements to “noncontrolling interests,” and made the following changes:
·The Consolidated Statements of Income now present “Net Income,” which includes “Net income attributable to noncontrolling interests” and “Net
Income Attributable to The Dow Chemical Company.” “Net Income Available for The Dow Chemical Company Common Stockholders” is
equivalent to the previously reported “Net Income Available for Common Stockholders.” No change was required to the presentation of earnings per
share.
·The Consolidated Balance Sheets now present “Noncontrolling interests” as a component of “Total equity.” “Noncontrolling interests” is equivalent to
the previously reported “Minority Interest in Subsidiaries.” “The Dow Chemical Company’s stockholders’ equity” is equivalent to the previously
reported “Net stockholders’ equity.”
·The Consolidated Statements of Cash Flows now begin with “Net Income” instead of “Net Income Available for Common Stockholders.”
·The Consolidated Statements of Equity now include a section for “Noncontrolling interests.”
·The Consolidated Statements of Comprehensive Income now separately present the components of “Comprehensive Income (Loss),” “Comprehensive
income attributable to noncontrolling interests, net of tax” and “Comprehensive Income (Loss) Attributable to The Dow Chemical Company.”
“Comprehensive Income (Loss) Attributable to The Dow Chemical Company” is equivalent to the previously reported “Comprehensive Income.”
On December 31, 2009, the Company adopted ASU 2010-02, “Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a
Subsidiary – a Scope Clarification,” which clarifies the decrease-in-ownership provisions of ASC Topic 810-10 and guidance applicability. In addition, the
ASU expands the required disclosures upon deconsolidation of a subsidiary. The Company will apply this ASU, as applicable, to transactions in the future.
Fair Value Measurements
On January 1, 2009, the Company adopted FSP No. FAS 157-2, “Effective Date of FASB Statement No. 157” (codified in
ASC Topic 820, “Fair Value Measurements and Disclosures”), related to nonfinancial assets and nonfinancial liabilities
that are not recognized or disclosed at fair value on the financial statements on a recurring basis. Since the
Company’s fair value measurements for nonfinancial assets and nonfinancial liabilities were consistent with the
guidance of the FSP, the adoption of the guidance did not have a material impact on the Company’s consolidated
financial statements. The Company’s required disclosures are included in Note K.
On June 30, 2009, the Company adopted FSP No. FAS 157-4, “Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (codified in ASC Topic 820). This FSP provided
additional guidance for estimating the fair value when the market activity for an asset or liability has declined significantly. The adoption of this guidance did
not have a material impact on the Company’s consolidated financial statements.
On October 1, 2009, the Company adopted ASU 2009-05, “Fair Value Measurements and Disclosures (Topic 820):
Measuring Liabilities at Fair Value.” This ASU clarified the fair value measurements for a liability in an active market
and the valuation techniques in the absence of a Level 1 measurement. The adoption of this ASU did not have a material impact on
the Company’s consolidated financial statements.
On December 31, 2009, the Company adopted ASU 2009-12, “Fair Value Measurements and Disclosures (Topic
820): Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” which provided
guidance within ASC Topic 820 on measuring the fair value of certain alternative investments in entities that calculate
net asset values. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.
Other Recently Adopted Accounting Guidance
On December 31, 2008, the Company early adopted SFAS No. 161, “Disclosures about Derivative Instruments and
Hedging Activities - an amendment of FASB Statement No. 133” (codified in ASC Topic 815, “Derivatives and
Hedging”). This guidance required enhanced disclosures about an entity’s derivative and hedging activities. The
Company’s required disclosures are included in Note J.
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