Fair Value Hierarchy and Investment Valuation Quiz

Cost approach

Wide range of possible fair value measurements and cost represents the best estimate within that range

Based on its market price which is categorized as Level 1

<p>By discounting the expected future cash flows using a discount rate equivalent to the risk-free rate of return adjusted for credit spread, categorized as Level 2</p> Signup and view all the answers

<p>Quoted equity shares and mutual funds</p> Signup and view all the answers

<p>Observable inputs other than quoted prices</p> Signup and view all the answers

<p>Significant unobservable inputs</p> Signup and view all the answers

<p>Unquoted equity shares and preference shares</p> Signup and view all the answers

<p>Cash and bank balances, Trade receivables, Investments, Derivatives, Loans, Other financial assets</p> Signup and view all the answers

<p>Mandatorily classified as fair value through the consolidated statement of profit and loss</p> Signup and view all the answers

<p>Financial instruments measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3</p> Signup and view all the answers

<p>Trade payables, Borrowings other than lease obligations, Derivatives, Other financial liabilities</p> Signup and view all the answers