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SMART & FINAL TO ADOPT NEW FASB ACCOUNTING STANDARDS; FUTURE IMPACT NOT MATERIAL

 SANTA BARBARA, Calif., March 18 /PRNewswire/ -- Smart & Final Inc. (NYSE: SMF) announced today that financial results for its 1993 fiscal year ending Jan. 2, 1994, will reflect the non-recurring, non-cash charges related to implementation of new accounting standards for non-pension post retirement benefits, for income taxes, and for post employment benefits as required by Financial Accounting Standards Board statement numbers 106, 109 and 112.
 Statement 106 requires accounting recognition for the costs of non-pension retirement benefits, such as health care, over the employees' active service periods, instead of the "pay as incurred" basis previously permitted.
 Statement 109 requires use of the "liability method" which applies current income tax rates to temporary differences between financial statements and tax returns. Under the previously permitted "deferred method," income tax provisions were determined using historical tax rates.
 Statement 112, which does not require adoption until 1994, calls for accounting recognition of the costs of a number of employment benefits over the employees' active service periods.
 The company will recognize the accumulated impact of these new pronouncements by a one-time non-cash charge to be recorded in the first quarter which will end on March 28, 1993. The non-recurring charges are expected to total approximately $12.9 million, net of applicable taxes. The ongoing impact of accounting under the new standards will not be material.
 Chairman of the Board and Chief Executive Officer Robert J. Emmons stated, "We are pleased to get all of these mandated accounting changes behind us. The company is in excellent financial health with over $100 million in equity after these non-recurring charges. Cash, which was over $40 million at year-end, is not affected, and the future annual impact of the new accounting standards, which is expected to be less than $0.02 per share for fiscal 1993, is not material."
 Founded in 1871 in Los Angeles, Smart & Final Inc. operates 126 non-membership grocery warehouse stores in California, Arizona and Nevada. Revenues for the company were $765 million in fiscal 1992.
 -0- 3/18/93
 /CONTACT: Leanne Reynolds of Smart & Final, 213-589-1054/
 (SMF)


CO: Smart & Final Inc. ST: California IN: REA SU:

EH-LS -- LA041 -- 7674 03/18/93 17:30 EST
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Publication:PR Newswire
Date:Mar 18, 1993
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