The Financial Accounting Standards Board and the China Accounting Standards Committee have signed a memorandum of understanding agreeing to strengthen communication and cooperation between the U.S. and Chinese standards setters.

FASB Chairman Robert Herz and Liu Yuting, director-general of the accounting regulatory department of the Chinese Ministry of Finance, signed the agreement at a meeting on April 18 at FASB headquarters.

"The memorandum of understanding signed by FASB and CASC represents our shared interest in moving to a common set of high-quality, global accounting standards, a goal that will ultimately facilitate economic relations between the U.S. and China," said Herz in a statement. "We look forward to continuing our dialogue with CASC, and to work with our counterparts in China to make international convergence of accounting standards a reality."

FASB and the CASC agreed to improve communication and understanding of technical issues to facilitate economic interaction between the U.S. and China. The two organizations intend to share their experiences with setting and implementing accounting standards and working on international convergence. That will include inviting each other to significant accounting standards seminars and conducting reciprocal visits. The two groups also plan to exchange opinions on a regular basis and build the technical foundations for sharing their views on the convergence of accounting standards.

The Chinese will send staff members to work at FASB on a regular basis to research U.S. generally accepted accounting principles and FASB's convergence efforts with International Financial Reporting Standards. FASB board members and staff will also visit the CASC to understand how it is implementing Chinese accounting standards and working on convergence with international standards.

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