The SFAS No 157 (FASB ASC 820) fair value hierarchy contains
A) Two level
B) Three levels
C) Four levels
D) Five levels

Question

The SFAS No 157 (FASB ASC 820) fair value hierarchy contains 
A) Two level
B) Three levels
C) Four levels
D) Five levels

Quizplus · Accepted Answer

The SFAS No. 157 (FASB ASC 820) fair value hierarchy contains three levels. Level 1 includes assets or liabilities measured using observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2 includes assets or liabilities measured using inputs other than quoted prices in active markets, such as quoted prices for similar assets or liabilities or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 includes assets or liabilities measured using unobservable inputs, such as management's own assumptions about cash flows or discount rates.

The SFAS No 157 (FASB ASC 820) Fair Value Hierarchy