Under GAAP, market values based on less reliable, unobservable inputs for securities are
Called:

Question

Quizplus · Accepted Answer

Level 3 measurements are market values based on unobservable inputs, also known as "significant unobservable inputs" or "fair values based on unobservable inputs." These inputs are less reliable than Level 1 and Level 2 measurements, which are based on observable inputs and are therefore considered more reliable. Level 3 measurements require the use of significant judgment and estimation, and may be more subjective than other types of measurements. Therefore, under GAAP, market values based on less reliable, unobservable inputs for securities are called Level 3 measurements.

Under GAAP, Market Values Based on Less Reliable, Unobservable Inputs