Fair Value Hierarchy
SFAS No.157establishesa hierarchy that ranks the quality and reliability of information used to determine fair value . Exhibit 7.3 provides a description of the levels in the hierarchy and examples.
If the fair value of an asset or liability is based on information from more than one level of the hierarchy , the classification of fair value depends on lowest level input with significant effect . For example , if particular measurement contains both Level 2 and Level 3 inputs and both have a significant effect , then the measurement falls in Level 3 .