Fair Value Hierarchy Classifier
ASC 820 establishes a three-level fair value hierarchy that prioritises the use of observable inputs over unobservable ones.
This tool classifies your valuation inputs into the correct hierarchy level and summarizes the disclosure requirements that apply under ASC 820-10-50-2, based on ASC 820-10-35-36 through 35-54.
Can you obtain a quoted price for an identical asset or liability in an active market that you can access at the measurement date?
An active market is one in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis (ASC 820-10-20). The price must be for an identical instrument — not a similar one. The entity must be able to access the market at the measurement date.
How it works
You describe the inputs used in your valuation — whether prices are quoted in active markets, whether the inputs are directly or indirectly observable, and whether significant unobservable adjustments are required.
The classifier applies the ASC 820 hierarchy and determines the overall level classification based on the lowest level of significant input, per ASC 820-10-35-37A.