The Financial Accounting Standards Board (FASB) and the China Accounting Standards Committee (CASC) have issued a Memorandum of Understanding (MOU) articulating their commitment to strengthen cooperation and communication between the two standards-setting organisations.
The groups met at the FASB's offices in Connecticut to discuss how they can work together on issues pertaining to international convergence of accounting standards. As a result of the meeting, the organisations expressed the following in the MOU:
- The FASB and the CASC will enhance communication and improve understanding in terms of technical issues to facilitate economic interaction between the two countries;
- The FASB and the CASC will 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
- The FASB and the CASC will strive to exchange opinions regularly and build the technical foundation for sharing views on convergence of accounting standards. Accordingly, the CASC will send staff to work at the FASB on a regular basis to research US GAAP and FASB's convergence efforts with International Financial Reporting Standards (IFRS). FASB Board members and staff will also visit the CASC to understand implementation of Chinese accounting standards and its international convergence efforts.
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