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AMOCO ADOPTING NEW ACCOUNTING STANDARDS IN FOURTH QUARTER

 CHICAGO, Dec. 29 /PRNewswire/ -- Amoco Corporation (NYSE: AN) today announced that it will adopt Financial Accounting Standards Board (FASB) Statement No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions," and Statement No. 109, "Accounting for Income Taxes," in the fourth quarter of 1992 retroactive to Jan. 1, 1992. The company said adoption of the new accounting standards will not affect Amoco's cash flows.
 The initial effect of adoption of the two standards will be recognized by recording as of Jan. 1, 1992, an estimated non-cash cumulative charge of $950 million, or $1.91 per share, to reflect application of the new standards to prior years. This represents estimated after-tax charges of $850 million for the adoption of Statement No. 106 and $100 million for the adoption of Statement No. 109.
 Additionally, the earnings for the first three quarters of 1992 will be restated to include an after-tax credit of about $140 million for Statement 109, partially offset by a charge of about $40 million for Statement No. 106. For the full year 1992, the effect on earnings of adopting these new accounting standards will be an estimated net credit of about $200 million, in addition to the cumulative effect of initial adoption.
 Under the provisions of Statement No. 106, companies are required to accrue the cost of postretirement benefits over the estimated remaining years of service of employees. For Amoco, these benefits principally relate to medical and life insurance benefits. These costs were previously accounted for as they were paid. The ongoing effect of Statement No. 106 on future reported earnings is not expected to be material.
 Prior to adoption of Statement No. 109, Amoco accounted for income taxes under FASB Statement No. 96. Statement No. 109 retains the liability concept of accounting for income taxes, but changes the method of measuring the effects of currency exchange rate changes on foreign deferred taxes associated with non-monetary assets. The future effects of Statement No. 109 on reported earnings will be affected by currency exchange rates.
 -0- 12/29/92
 /CONTACT: Greg Clock of Amoco Corporation, 312-856-5481/
 (AN)


CO: Amoco Corporation ST: Illinois IN: OIL SU: ACC

KK -- CL008 -- 0354 12/29/92 13:49 EST
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Date:Dec 29, 1992
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