Fair value hierarchy and Net profit: Difference between pages

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''Financial reporting - IFRS 13''.
1.  


IFRS 13 seeks to increase consistency and comparability in fair value measurements and related disclosures through a 'fair value hierarchy'.
''Tax and accounting.''


Profit after tax, also known as Earnings.


The hierarchy categorises the inputs used in valuation techniques into three levels i.e. Level 1, Level 2 and Level 3.


*Level 1 inputs: quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.
2.  


*Level 2 inputs: inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly.
More generally, profit calculated after taking account of related expenses.


*Level 3 inputs: unobservable inputs for the asset or liability.
Sometimes referred to informally as ''the bottom line'' because of its position at (or near) the bottom line of an Income statement.
 
The alternative term ''net income'' may refer to either of the definitions of Net profit in 1. and 2. above.




== See also ==
== See also ==
* [[Fair value]]
* [[Bottom line]]
* [[FVTPL]]
* [[Earnings]]
* [[FVTOCI]]
* [[Gross profit]]
* [[IFRS 13]]
* [[Income statement]]
* [[International Accounting Standards Board]]
* [[Operating profit]]
 
[[Category:Accounting,_tax_and_regulation]]

Revision as of 15:53, 30 May 2015

1.

Tax and accounting.

Profit after tax, also known as Earnings.


2.

More generally, profit calculated after taking account of related expenses.

Sometimes referred to informally as the bottom line because of its position at (or near) the bottom line of an Income statement.

The alternative term net income may refer to either of the definitions of Net profit in 1. and 2. above.


See also