Editing Financial Accounting Standards Board (section)

=== Conceptual Framework ===
The FASB Conceptual Framework was established in 1973 as a comprehensible set of standards and rules intended to address and solve new emerging issues. The conceptual framework underlaid financial accounting by serving as the Board's reasoning behind its standards-setting decisions.<ref name="Storey">{{cite book|last1=Storey|first1=Reed K.|last2=Storey|first2=Sylvia|title=The Framework of Financial Accounting Concepts and Standards|date=1998|publisher=Financial Accounting Standards Board|location=Norwalk, CT|url=https://books.google.com/books?id=ELJpQgAACAAJ}}</ref><ref name="Freedman">{{cite web|last1=Freedman|first1=John|title=What Is the Conceptual Framework Developed by the Financial Accounting Standards Board?|url=http://smallbusiness.chron.com/conceptual-framework-developed-financial-accounting-standards-board-67249.html|access-date=16 November 2017|language=en}}</ref>

The conceptual framework provides two functions: to state the objectives of financial reporting and provide definitions of financial statement elements. The conceptual framework creates a foundation for financial accounting and establishes consistent standards that highlight the nature, function, and limitations of financial reporting.<ref name="Storey"/><ref name="Freedman"/>