Exhibit 18
ARTHUR
ANDERSEN
ARTHUR ANDERSEN & Co. SC
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Arthur Andersen LLP
February 9, 1995
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1345 Avenue of the Americas
New York NY 10105
International Paper Company
Two Manhattanville Road
Purchase, New York 10577
Re: Form 10-K Report for the Year Ended December 31, 1994
This letter is written to meet the requirements of Regulation S-K calling for a
letter from a registrant's independent accountants whenever there has been a
change in accounting principle or practice.
As of January 1, 1994, the Company changed from the deferred method of
accounting for startup costs to the direct expense method. According to the
management of the Company, this change was made to increase the focus on
controlling costs associated with facility startups.
A complete coordinated set of financial and reporting standards for determining
the preferability of accounting principles among acceptable alternative
principles has not been established by the accounting profession. Thus, we
cannot make an objective determination of whether the change in accounting
described in the preceding paragraph is to a preferable method. However, we have
reviewed the pertinent factors, including those related to financial reporting,
in this particular case on a subjective basis, and our opinion stated below is
based on our determination in this manner.
We are of the opinion that the Company's change in method of accounting is to an
acceptable alternative method of accounting, which, based upon the reasons
stated for the change and our discussions with you, is also preferable under the
circumstances in this particular case. In arriving at this opinion, we have
relied on the business judgement and business planning of your management.
Very truly yours,
ARTHUR ANDERSEN LLP