This course explores the inputs used in fair value measurements and how ASC Topic 820 establishes a hierarchy based on the observability of those inputs. It begins by distinguishing between observable and unobservable inputs and explaining how the quality and availability of inputs affect the reliability of fair value estimates. The course covers Level 1, Level 2, and Level 3 inputs, the use of market based information, management assumptions, and the challenges associated with measurements that require significant judgment. It also discusses how entities evaluate available inputs and determine the appropriate information to use when measuring fair value under ASC 820.
Course Publication Date:
August 22, 2026
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$10.00!
| Author: | Kelen Camehl |
| Course No: | ACT-EVALINPUTS-86506 |
| Recommended CPE: | 1.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Basic |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
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Learning Objectives
- Identify the types of inputs used in fair value measurements.
- Distinguish between Level 1, Level 2, and Level 3 inputs.
- Determine the appropriate level of inputs used in fair value measurements.
- Recognize challenges associated with unobservable inputs and management assumptions.