ChartAcc

Hint

As per IFRS 7, Fair Valuation of Financial Instruments has following hierarchy:

• Level 1
  
  - in Active Markets
  
  - for identical assets or liabilities or instruments
  - Valued using Quoted Prices (unadjusted)
  e.g. Listed instruments
• Level 2
  
  - Valued by reference to inputs that are observable:
      > Direct (prices), or
      > Indirect (derived from prices)
  - other than quoted prices included within Level 1
  e.g. derivatives such as interest rate swaps or forward currency contracts where inputs are mostly observable and OTC (Over-the-counter) securities
• Level 3
  
  - using inputs that are based on unobservable market data
  
  - Valued by reference to valuation techniques
  e.g. Unquoted private equity or venture capital holdings
  

• Levels
  The levels in the fair value hierarchy into which the fair value measurements are categorised
• Transfers (between Level 1 and 2)
  - significant transfers between Level 1 and Level 2, if any, and
  - the reasons for those transfers
• Reconciliation (Level 3)
  
  - a reconciliation for fair value measurements in Level 3
     >  from the beginning balances to the ending balances,
     >  highlighting purchases, sales, and gains and losses,
     >  identify transfers into or out of Level 3, and
  - the reasons for such transfers.

• when the carrying value is reasonable approximation of fair value,
  such as short-term trade receivables and payables, or
• for instruments whose fair value cannot be measured reliably