Fair value hierarchy: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Source: IFRS 13, www.iasplus.com) |
imported>Doug Williamson (Specify financial reporting context.) |
||
| Line 1: | Line 1: | ||
''Financial reporting - IFRS 13''. | |||
IFRS 13 seeks to increase consistency and comparability in fair value measurements and related disclosures through a 'fair value hierarchy'. | IFRS 13 seeks to increase consistency and comparability in fair value measurements and related disclosures through a 'fair value hierarchy'. | ||
The hierarchy categorises the inputs used in valuation techniques into three levels i.e. Level 1, Level 2 and Level 3. | 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. | *Level 1 inputs: quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. | ||
Level 2 inputs: inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. | *Level 2 inputs: inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. | ||
Level 3 inputs: unobservable inputs for the asset or liability. | *Level 3 inputs: unobservable inputs for the asset or liability. | ||
| Line 14: | Line 17: | ||
* [[FVTPL]] | * [[FVTPL]] | ||
* [[FVTOCI]] | * [[FVTOCI]] | ||
* [[IFRS 13]] | |||
* [[International Accounting Standards Board]] | * [[International Accounting Standards Board]] | ||
Revision as of 17:36, 10 July 2018
Financial reporting - IFRS 13.
IFRS 13 seeks to increase consistency and comparability in fair value measurements and related disclosures through a 'fair value hierarchy'.
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.
- Level 2 inputs: inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly.
- Level 3 inputs: unobservable inputs for the asset or liability.
