Fair value hierarchy

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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'.


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