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INDRESCO INC. REPORTS EFFECT OF ADOPTION OF FAS 109 AND FAS 106

 INDRESCO INC. REPORTS EFFECT OF ADOPTION OF FAS 109 AND FAS 106
 DALLAS, Nov. 12 /PRNewswire/ -- Indresco Inc. (NYSE: ID) today reported the effect of the adoption of Financial Accounting Standard (FAS) 109, retroactive to Nov. 1, 1991, as well as the estimated impact of the adoption of FAS 106 effective Nov. 1, 1992.
 FAS 109 requires companies to account for deferred income taxes using the liability method. Indresco will record a charge of up to $15 million from adoption of this pronouncement.
 FAS 106 requires companies to begin accruing, or setting up a reserve for, post retirement benefits. As most companies have been deducting such benefit costs only as they were actually paid, the charge requires them to take a "catch-up" charge for prior years when the companies switch to the new accounting. As a result of this change, Indresco will record a one-time, cumulative after tax charge of $45 to $55 million or $1.60 to $2.00 per share. This change will have no cash flow impact. The continuing annual charge will approximate the level experienced under the previous pay-as-you-go method and reflects a new and more efficient health-care benefits package.
 Indresco is a major industrial company that provides products essential to infrastructure development and basic industrial production.
 -0- 11/12/92
 /CONTACT: Gene E. Leeson of Indresco Inc., 214-953-4505/
 (ID) CO: INDRESCO Inc. ST: Texas IN: SU:


TM -- NY098 -- 0407 11/12/92 17:12 EST
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Publication:PR Newswire
Date:Nov 12, 1992
Words:240
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