Concept Statements (CS) serve what primary function?

Concept Statements (CS) primarily serve to describe the framework for evaluating standards in governmental accounting and financial reporting. They provide foundational principles that guide the development, evaluation, and application of accounting standards and practices. By laying out the objectives, concepts, and underlying principles, these statements help ensure consistency and coherence in how financial information is reported and understood.

This framework is crucial because it not only helps standard-setters when developing new accounting standards but also assists accountants and financial professionals in understanding the rationale behind those standards. By providing a cohesive set of concepts, the Concept Statements facilitate the evaluation of existing standards and practices to ensure they align with the overall objectives of governmental financial reporting. This allows for better transparency and accountability, ultimately aiding in the effective management and representation of public resources.