Companies report securities based on a fair value hierarchy in which Level 3 is the most reliable estimates of inputs used and Level 1 fair value input estimates require the most judgment.

Question

Quizplus · Accepted Answer

Level 1 inputs are the most reliable as they are based on observable market prices, while Level 3 inputs require the most judgment as they are based on unobservable data.

Companies Report Securities Based on a Fair Value Hierarchy in Which