Inputs and Hierarchy

Question 1

What are unobservable inputs?

Answer 1

-Inputs reflecting entity’s own assumptions

Question 2

Define Level 1 inputs.

Answer 2

-UNADJUSTED quoted prices in active markets IDENTICAL to those being valued that the entity can obtain at the measurement date

Question 3

Should Level 1 inputs be adjusted for “blockage factor”?

Answer 3

-No

Question 4

Define Level 3 inputs.

Answer 4

-Unobservable inputs