Which of the following is not an example of a level 2 input?
A) Quoted prices for identical or similar assets or liabilities in markets that are not active.
B) Inputs such as interest rates and yield curves, volatilities, prepayment speeds, and credit risks.
C) Measuring accounts receivable based on the entity's historical records of recoverability.
D) Inputs that are derived from or corroborated by observable market data by correlation or other means.

Question

Quizplus · Accepted Answer

Measuring accounts receivable based on the entity's historical records of recoverability is an example of a level 3 input, which is unobservable and requires more subjective judgement. The other answer choices are all examples of level 2 inputs, which are observable inputs that may not be directly available, but can be obtained from other sources or corroboration.

Which of the Following Is Not an Example of a Level