IFRS 13Chapter 11Lesson 1
The fair value hierarchy: Levels 1, 2 and 3
Step 1 of 6Learning objectives
Go deeper+2 deeper insights · +1 point of attention
Inputs are ranked in three levels in decreasing priority; the whole measurement is classified at the level of the lowest-level input that is significant to it. A Level 1 quoted price is used without a blockage discount.
45 minNot started
Learning objectives
- Identify Level 1, 2 and 3 inputs.
- Classify a measurement at the level of the lowest-level input that is significant, and justify that significance.
- Apply the rule of quoted price multiplied by quantity held, without a blockage discount.
- Explain the policy for determining when transfers between levels occur.