The fair value hierarchy prioritises inputs into how many levels?
A)One level
B)Two levels
C)Three levels
D)Four levels

Question

Quizplus · Accepted Answer

The fair value hierarchy prioritises inputs into three levels, with Level 1 being the most reliable and Level 3 being the least reliable. Level 1 inputs are quoted prices in active markets for identical assets or liabilities, Level 2 inputs are observable market data other than quoted prices (such as market prices for similar assets), and Level 3 inputs are unobservable inputs (such as management estimates).

The Fair Value Hierarchy Prioritises Inputs into How Many Levels