ABSTRACT
In his letter introducing the ‘conceptual framework project’, the chairman of the Financial Accounting Standards Board sounds an optimistic note. ‘The framework should lead to increased public confidence in financial statements’ (FASB, 1976). That hope is repeated in the body of the document itself.
To add credence to financial reporting – to minimize skepticism about financial statements – is a major purpose of a conceptual framework and, indeed, can be said to be an important aspect of the mission of the Financial Accounting Standards Board.
(FASB, 1976: 8, 9)