U.S.-based Financial Accounting Standards Board and the China Accounting Standards Committee signed a memorandum of understanding to strengthen cooperation and communication between the two standards-setting organizations.

FASB Chairman Robert Herz and Liu Yuting, member of the CASC and director-general of the Accounting Regulatory Department of China's Ministry of Finance, signed the MOU at the FASB headquarters in Norwalk, Connecticut.

"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. "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."

Based on the MOU, 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 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.