The IASB has set a hierarchy of inputs to consider in assessing fair value. Prices taken from a recent trade on the NIKKEI of an index stock would fall under which level?
A) Level 0 valuations
B) Level 1 valuations
C) Level 2 valuations
D) Level 3 valuations

Question

Quizplus · Accepted Answer

Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date, such as prices from a recent trade on the NIKKEI for an index stock.

The IASB Has Set a Hierarchy of Inputs to Consider