Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 2 - Conceptual Framework for Financial Reporting - Review and Practice - Brief Exercises - Page 64: BE2-11


Investment 1—Level 3 Investment 2—Level 1 Investment 3—Level 2

Work Step by Step

Normally, the fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels just as demonstrated above. It gives the first priority to quoted prices in active markets and the lowest priority to the unobserved input levels.
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