Which of the following is the lowest level of the SFAS 157 (FASB ASC 820) fair value hierarchy?
A) Unobservable inputs (that are corroborated by observable market data)
B) Unobservable inputs (that are not corroborated by observable market data)
C) Observable market-based inputs (or unobservable inputs that are corroborated by market data)
D) Quoted market prices for identical assets or liabilities in active markets

Question

Which of the following is the lowest level of the SFAS 157 (FASB ASC 820) fair value hierarchy? 
A) Unobservable inputs (that are corroborated by observable market data)
B) Unobservable inputs (that are not corroborated by observable market data)
C) Observable market-based inputs (or unobservable inputs that are corroborated by market data)
D) Quoted market prices for identical assets or liabilities in active markets

Quizplus · Accepted Answer

According to SFAS 157, the lowest level of the fair value hierarchy is unobservable inputs that are not corroborated by observable market data. This means that the fair value is largely based on management's judgment or assumptions, and therefore carries the highest degree of uncertainty and risk.

Which of the Following Is the Lowest Level of the SFAS