3 level hierarchy recommended by IFRS 13 to evaluate informational inputs into the measurement of fair value.

To increase consistency and comparability in fair value measurements and related disclosures, the IFRS 13 establishes a fair value hierarchy  that categorizes into three levels, the input to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active market for identical assets and liability (level 1 input) and the lowest priority to unobservable input (level 3 input)


Level 1 input are quoted prices (unadjusted) in active market for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the assets or liabilities, either directly or indirectly.

Level 3 input are unobservable input for assets and liabilities

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