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ARCO CHEMICAL ADOPTS SFAS 106 AND 109

 NEWTOWN SQUARE, Pa., Jan. 19 /PRNewswire/ -- ARCO Chemical Company (NYSE: RCM) announced today that the company has elected to adopt Statement of Financial Accounting Standards (SFAS) Nos. 106 and 109 retroactive to January 1, 1992. The Financial Accounting Standards Board requires public companies to adopt these standards no later than fiscal years beginning after December 15, 1992.
 A charge of $20 million after tax, or $0.21 per share, for the adoption of SFAS 106 will be offset by a credit of $18 million, or $0.19 per share, related to the adoption of SFAS 109. Earnings for the first quarter 1992 will be restated as a result of these accounting changes, which have no effect on ARCO Chemical Company's 1992 cash flowsd?dition, SFAS 106 requires the company to record an annual charge against earnings. In 1992, this annual charge will not be material and will be more than offset by the favorable tax rate impact resulting from the adoption of SFAS 109.
 SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions," requires companies to recognize estimated future costs of benefits earned by current and retired employees. The company presently records an expense when an obligation is paid.
 SFAS No. 109, "Accounting for Income Taxes," is a modification of SFAS No. 96, which the company had previously adopted in 1990. The new standard increases the company's ability to recognize deferred tax assets because future income may now be considered when assessing the company's ability to realize such assets.
 /delval/
 -0- 1/19/93
 /CONTACT: Gerald T. Davis (media), 215-359-3198, or Marcia H. Gesser (investor), 215-359-3382, both of ARCO Chemical/
 (RCM)


CO: ARCO Chemical Company ST: Pennsylvania IN: CHM SU:

JS -- PH032 -- 6500 01/19/93 15:40 EST
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Publication:PR Newswire
Date:Jan 19, 1993
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