The following extract is from Conceptual Framework for Financial Accounting and Reporting: Elements of Financial Statements and Their Measurement, FASB 3, December 1976.
The benefits of achieving agreement on a conceptual framework for financial accounting and reporting manifest themselves in several ways. Among other things, a conceptual framework can
(1) Guide the body responsible for establishing accounting standards,
(2) Provide a frame of reference for resolving accounting questions in the absence of a specific promulgated standard,
(3) Determine bounds for judgment in preparing financial statements,
(4) Increase financial statement users’ understanding of and confidence in financial statements, and
(5) Enhance comparability.

Required:
(a) Define a conceptual framework.
(b) Critically examine why the benefits provided in the above statements are likely to flow from the development of a conceptual framework for accounting.