On Monday, the Financial Crisis Advisory Group (FCAG) released a letter to the chairman of the G-20 (G-20) regarding the progress made by the FCAG towards convergence of the accounting standards set forth by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) as recommended by the FCAG in its July 28, 2009 report.

The July report stressed the importance of broadly accepted accounting standards developed and implemented as a result of a thorough due process. In its most recent letter, the FCAG acknowledged that, while market conditions have improved recently, it “remains critically important to achieve a single set of high quality, globally converged financial reporting standards that provide consistent, unbiased, transparent and relevant information across geographical boundaries.” The FCAG also emphasized that the IASB and FASB must “enjoy a high degree of independence from undue commercial and political pressures,” while also having “a high degree of accountability through appropriate due process, including wide engagement with constiuents, and oversight conducted in the public interest.” While FCAG was encouraged by the IASB’s and FASB’s progress to date in implementing globally converged standards, it reiterated the importance of supporting the shared goals, values and principles set forth in the IASB’s and FASB’s November 5, 2009 joint statement and memorandum of understanding.

FCAG concluded by noting certain key developments that will take place during 2010, including the SEC’s response to comments received regarding its proposed roadmap regarding the potential use of International Financial Reporting Standards by U.S. reporting companies, the European Union’s decision regarding the IASB’s financial instruments project and feedback on the project from constituents, and the issuance by FASB of its comprehensive financial instruments proposals on classification and measurement, impairment and hedge accounting.

The next meeting of the FCAG is scheduled for the fourth quarter of 2010.