Dow Chemical 2015 Annual Report Download - page 85

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75
The Dow Chemical Company and Subsidiaries
Notes to the Consolidated Financial Statements
Table of Contents
Note Page
1 Summary of Significant Accounting Policies
2 Recent Accounting Guidance
3 Restructuring
4 Acquisitions
5 Divestitures
6 Reverse Morris Trust Transaction
7 Inventories
8 Property
9 Nonconsolidated Affiliates and Related Company Transactions
10 Goodwill and Other Intangible Assets
11 Financial Instruments
12 Fair Value Measurements
13 Supplementary Information
14 Earnings Per Share Calculations
15 Commitments and Contingent Liabilities
16 Transfers of Financial Assets
17 Notes Payable, Long-Term Debt and Available Credit Facilities
18 Pension Plans and Other Postretirement Benefits
19 Leased Property
20 Variable Interest Entities
21 Stock-Based Compensation
22 Stockholders' Equity
23 Income Taxes
24 Accumulated Other Comprehensive Loss
25 Noncontrolling Interests
26 Operating Segments and Geographic Areas
27 Planned Merger with DuPont
28 Planned Restructure of Dow Corning
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Basis of Presentation
The accompanying consolidated financial statements of The Dow Chemical Company and its subsidiaries (“Dow” or the
“Company”) were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.
GAAP”) and include the assets, liabilities, revenues and expenses of all majority-owned subsidiaries over which the Company
exercises control and, when applicable, entities for which the Company has a controlling financial interest or is the primary
beneficiary. Intercompany transactions and balances are eliminated in consolidation. Investments in nonconsolidated affiliates
(20-50 percent owned companies, joint ventures and partnerships) are accounted for using the equity method.
As a result of the early adoption of Accounting Standards Update 2015-03 "Interest - Imputation of Interest (Subtopic 835-30):
Simplifying the Presentation of Debt Issuance Costs," certain reclassifications of prior years' footnote disclosure amounts have
been made to conform to the 2015 presentation.
Use of Estimates in Financial Statement Preparation
The preparation of financial statements in accordance with U.S. GAAP requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s consolidated
financial statements include amounts that are based on management’s best estimates and judgments. Actual results could differ
from those estimates.
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