About this authority
- Publisher
- Financial Accounting Foundation
- Standing
- Primary authority
- Version
- Concepts Statement No. 8, Chapters 1 through 8, September 2024 compilation
- Relevant parts
- Concepts Statement No. 8, Chapters 1 through 8, all issued
- Currency
- current · checked Aug 7, 2026
What this source helps explain
The Financial Accounting Standards Board (FASB) uses its Conceptual Framework to guide standard setting. The framework explains the purpose of financial reporting, the qualities of useful information, and the elements represented in financial statements.
Use it for questions such as why assets, liabilities, income, and equity connect, or why a reported amount needs a clear period and reporting entity. A reporting entity is the business or group covered by the statements.
What it does not decide
Concepts Statements are not authoritative United States generally accepted accounting principles (US GAAP). They do not override a requirement in the Accounting Standards Codification, which organizes authoritative nongovernmental US GAAP.
For a specific reporting treatment, check the applicable Codification guidance. The framework can help explain the reasoning, but it is not a substitute for the rule governing the transaction.
Where to start
For the basic relationships among financial statements, begin with Chapter 4, Elements of Financial Statements, and Chapter 7, Presentation. Other chapters address reporting objectives, the reporting entity, information quality, recognition, measurement, and notes.
This is optional background for statement preparation, not a prerequisite to completing the site's introductory closing or equity exercises.