I am struggling with the FASB’s treatment of precision and where it belongs in the conceptual framework. I believe that they are now thinking it affects relevance. They are clear that it is not part of their definition of reliability. The latter is not, in my own opinion, an issue. But I’m struggling with it being part of (or at least directly affecting relevance).
I wonder if we need a third dimension — one in addition to relevance and reliability. That would be precision of a measurement.
Anybody else have thoughts?