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In recent years the theoretical definitions of formative assessment and national states’ implementation of Assessment For Learning (AFL) programs and other formative assessment policies have undergone critical examinations. The paper demonstrates how the profound potential of sound formative assessment policies and practices are undermined by weak applications in policy, theory and research. Furthermore, drawing on empirical examination of national policies in Sweden and Norway, it introduces a new classification of educational assessment purposes that may be helpful to discuss tensions of purposes in educational assessment policies. The study demonstrates the importance of understanding how policy legitimation is a crucial factor that drives policies in different directions dependent upon perceived legitimacy among stakeholders.