// definition
Level 3
Unobservable-input fair value
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Short definition
The IFRS fair-value category in which significant unobservable inputs enter the model. It signals more estimation uncertainty and judgement, not necessarily a loss or an impaired asset.
risk atlas
Knowledge map
Intuition
Level 3 measures dependence on judgement. It is not a synonym for hidden loss.
Related analyses
- The balance sheet Apollo does not consolidateAthora fair-value hierarchy and audit evidence.
- Private credit, one asset, two pricesModel valuations and market-price divergence.
Related guides
- Reading private-credit riskValuation, defaults, leverage and liquidity.
Primary sources
- IFRS FoundationIFRS 13 fair-value hierarchy.