According to the conceptual framework for financial reporting, equity is the residual interest in the assets of an entity after deducting its liabilities. In other words, equity represents the amount of assets that belong to the owners of the entity, after all its obligations to creditors have been satisfied.

This definition has two key components:

1. Residual interest: Equity represents the residual interest in the assets of an entity, which means that it is the amount that remains after all liabilities have been deducted from the entity's assets.
2. Ownership: Equity belongs to the owners of the entity, which can include shareholders in the case of a corporation, partners in the case of a partnership, or the owner in the case of a sole proprietorship.

Examples of equity accounts include common stock, retained earnings, and additional paid-in capital.

Overall, the definition of equity in the conceptual framework emphasizes the importance of ownership and the residual interest in an entity's assets in determining the amount of equity that belongs to the owners.