The fair value hierarchy

7 min · IFRS 13
01 · Concept

Fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date — an exit price.

  • 01Level 1: quoted prices in active markets.
  • 02Level 2: observable inputs other than quoted prices.
  • 03Level 3: unobservable inputs (use of own assumptions).