The FASB has set a hierarchy of inputs to consider in assessing fair value.Which of the following relates to Level 3?
A)Quoted prices for identical items in active,liquid,and visible markets.
B)Unobservable inputs to be used in illiquid situations.
C)Observable information for similar items in active or inactive markets.
D)Unobservable inputs to be used in situations where markets do not exist.

Question

Quizplus · Accepted Answer

Level 3 inputs are unobservable inputs used in situations where markets do not exist, reflecting the entity's own assumptions about the assumptions market participants would use.

The FASB Has Set a Hierarchy of Inputs to Consider