Fair Value
Also called: fair value accounting, level 1 2 3 inputs
Fair value is the price an asset would fetch in an orderly transaction between willing parties today. Reporting standards rank the evidence: Level 1 is a quoted market price, Level 2 uses observable inputs, Level 3 is a model with unobservable ones. The proportion of Level 3 assets on a balance sheet is a direct measure of how much of the reported value is management opinion.
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