Locate the most recent set of financial statements for the companies listed below. You may use either the 10-K available at EDGAR (www.sec.gov/edaux/

searches.htm) or the annual report available at the company’s home page. The annual report is usually located in the Investor Information section.

Corporation Home Page Location Owens Corning www.owens-corning.com Rohm & Haas www.rohmhaas.com Utilicorp www.utilicorp.com Eli Lilly www.lilly.com The Notes to the Financial Statements contain a section on contingencies.

Required

a. Describe at least one contingency faced by each company.

b. How has each corporation accrued its loss contingency, or is it only mentioned in the Notes to the Financial Statements? If it is only mentioned in the notes, is a dollar amount disclosed? Discuss these alternative disclosures.

c. If a dollar amount for contingent liabilities is available, calculate the percentage of shareholders’equity it represents for each company. In your opinion, is this a significant amount?

d. In each case, discuss the underlying business reasons supporting the need for disclosing a contingency or a commitment.