FASB Chairman Robert Herz and Liu Yuting, member of the CASC and Director-General of the Accounting Regulatory Department of the Ministry of Finance, signed the agreement at an April 18 meeting held at FASB's headquarters in Norwalk, Connecticut.

The meeting was intended to facilitate dialogue between the U.S. and China on how the countries can work together on issues pertaining to international convergence of accounting standards.

"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," stated Chairman Herz. "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."

As a result of the meeting, the organizations agreed to: enhance communication and improve understanding in terms of technical issues to facilitate economic interaction between the two countries; facilitate the exchange of experience of accounting standard setting, implementation, and international convergence between the two countries, including inviting each other to significant accounting standards seminars, reciprocal visits, etc.; and exchange opinions regularly and build the technical foundation for sharing views on convergence of accounting standards.

CASC will send staff to work at FASB on a regular basis to research U.S. GAAP and FASB's convergence efforts with International Financial Reporting Standards. FASB Board members and staff will also visit the CASC to understand implementation of Chinese accounting standards and its international convergence efforts.