Conflict in Concepts The concepts of relevance and reliability sometimes conflict with one another, yet both are important in making accounting information useful.

a. Define relevance and reliability, and explain why they are important.

b. Explain how these two concepts might conflict in attempting to reach a judgment on the price to be paid for land that will be used for a new regional airport. The land under consideration is a short distance outside of town and was purchased by its current owner ten years ago as top quality agricultural land at $1,800 per acre. The land is expected to have a value in the range of $300,000 to

$500,000 per acre once airport improvements have been added. Airport improvements are expected to cost between $250,000 and $400,000 per acre.