Conceptual+Framework

=Conceptual Framework= The conceptual framework for financial reporting has two primary purposes. First, it serves as a foundation upon which the FASB constructs financial reporting standards that are internally sound and consistent. Second, the conceptual framework is intended to be used by the business community reporting or consuming financial information to help them better understand and apply financial reporting standards.

The conceptual framework does this by (per the FASB Special Report, //The Framework of Financial Accounting Concepts and Standards// (1998):
 * Providing a set of common premises as a basis for discussion
 * Provide precise terminology
 * Helping to ask the righ questions
 * Limiting areas of judgment and discretion and excluding from consideration potential solutions that are in conflict with it
 * Imposing intellectual discipline on what traditionally has been a subjective and ad hoc reasoning process

The conceptual framework breaks financial reporting into elements and financial statement components.

**Goal/Objective of General Purpose Financial Reporting**
The goal or objective of general purpose financial reporting per the FASB/IASB conceptual framework is: To provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity.