Fair value hierarchy: Difference between revisions

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imported>Doug Williamson
(Source: IFRS 13, www.iasplus.com)
 
imported>Doug Williamson
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''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.




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* [[FVTPL]]
* [[FVTPL]]
* [[FVTOCI]]
* [[FVTOCI]]
* [[IFRS 13]]
* [[International Accounting Standards Board]]
* [[International Accounting Standards Board]]
* [[IFRS 13]]
 
[[Category:Compliance_and_audit]]

Latest revision as of 10:29, 11 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.


See also