Exhibit (a)(18)
Air Products and Chemicals, Inc.
7201 Hamilton Boulevard
Allentown, Pennsylvania 18195-1501
3 August 2000
Re: Air Products and Chemicals, Inc. (the "Company") Form 10-Q Report for the
quarter ended 30 June 2000.
Gentlemen/Ladies:
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.
We have been informed that, as of 30 June 2000, the Company changed from
the accrue in advance method of accounting for major maintenance to the
expense as incurred method of accounting. According to the management of
the Company, this change was made to conform its policy to the position
taken by the staff of the Securities and Exchange Commission ("SEC"),
whereby the staff has stated that it does not believe the accrue in advance
method of accounting is appropriate.
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 made 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 judgment and business planning
of your management.
We have not audited the application of this change to the financial
statements of any period subsequent to 30 September 1999. Further, we have
not examined and do not express any opinion with respect to your financial
statements for the nine months ended 30 June 2000.
Very truly yours,
ARTHUR ANDERSEN LLP
