Fair Value- Inputs and Hierarchy Flashcards
1
Q
How many levels are in the fair value input hierarchy?
A
Three Levels
2
Q
Define a LEVEL 1 for the fair value hierarchy?
A
LEVEL 1: Unadjusted quoted prices in active markets for assets or liabilities identical to those being valued
3
Q
Define a LEVEL 2 for the fair value hierarchy?
A
LEVEL 2: Quoted prices for SIMILAR assets or liabilities in markets that are NOT active
4
Q
Define a LEVEL 3 for the fair value hierarchy?
A
LEVEL 3: Unobservable inputs that reflect the entities own assumptions about market participants.
5
Q
Net Asset Value (NAV) is a practical expedient for fair value, does it require a classification?
A
No.
