Bermuda has a key role to play in accounting and maintaining its high standards on the world stage.

That is according to David Costello, president and CEO of the National Association of State Boards of Accountancy, who was guest speaker at the Institute of Chartered Accountants of Bermuda's (ICAB) Annual General Meeting held at the Fairmont Hamilton Princess yesterday.

Mr. Costello was joined by fellow American Bill Treacy, executive director of the Texas State Board of Public Accountancy, and outgoing chair of the ICAB Thomas Conyers and new incumbent Bill Jack at the event which was attended by 90 chartered accountants (CAs).

Mr. Costello said it was important for the Island's accountants to be fully qualified and properly accredited in order to to do their jobs well and be ready for the move towards an internationally recognised accounting standard.

"Bermuda is part of the international community and accounting is becoming more international," he said.

"Where Bermuda fits into that is that it is a hub of financial activity and community and I don't think there is a country in the world that is not affected by Bermuda and the US is particularly affected by what goes in here.

"Being a financial centre and hub, Bermuda must be in our considerations as we go forward with the professional credentials needed by accountants.

"We consider CAs in Bermuda and certified public accountants (CPAs) in the US on a par with each other and I really believe that in time, in a few short years, these credentials will be recognised all over the world."

And Mr. Costello believes it is crucial for Bermuda's accountancy industry to play to its strengths rather than focusing on its differences with such a wide range of accountants from different backgrounds and countries on the Island.

"Instead of emphasising our differences, we try to emphasise our strengths and commonality and that ignores the differences that we have," he said.

"We are all working towards an internationally recognised accounting standard and at the same time we recognise that Bermuda is very proud of its CA designation, as the US is for its CPA one, and I see a worldwide respect for the various accreditations.

"The International Financial Reporting Standards is looking at it and certainly it is something we are alive to the concept of and look forward to supporting it."

He reckons the biggest challenge Bermuda faces is the same as the US - that of implementing a new set of standards in order to world together more effectively.

"It is one thing to apply it to publically-held companies and another to apply it to significant privately-held organisations," he said. "There is a lot of cost and debate involved and there is a lot of opposition groups, certainly in the US, and I think the challenges are similar."

Meanwhile, Mr. Costello said the fair value accounting system, including the mark-to-market valuation system, which forced American International Group to write down billions of dollars worth of mortgage-backed securities they held, was something yet to be considered in the US.

The ICAB, which has 870 members, is an affiliate member of Canada's Institute of Chartered Accountants and has got a mutual recognition with the US equivalent.