ifrs 13 6/12

Hi Kerri

Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date.

(A quoted market price in an active market provides the most reliable evidence of fair value and is used without adjustment to measure fair value whenever available, with limited exceptions)

If a company holds an asset that is actively traded, the open market value is the most reliable measure and it doesn’t matter that the asset held, were it to be put on the market for sale, would adversely affect the open market price

Level 2 inputs are inputs other than quoted market prices (because they are Level 1!) that are observable for the asset or liability, either directly or indirectly.

They include:
quoted prices for similar assets or liabilities in active markets
quoted prices for identical or similar assets or liabilities in non-active markets
inputs other than quoted prices that are observable for the asset or liability, for example
interest rates

Level 3 inputs are unobservable inputs for the asset or liability.

Unobservable inputs are used to measure fair value where relevant observable inputs are not available. Level 3 inputs are therefore appropriate in situations where there is little, if any, market activity for the asset or liability at the measurement date.

These unobservable inputs will typically use the best information available in the circumstances and might include the company’s own data, whilst taking into account all available information and assumptions about the relevant market

Is that ok?

Yes, only level 3 resorts to the unobservable