Answer True and False

$1.$ Compa nies report securities based on a fair value hierarchy in which Leve l $3$ is the most

reliable estimates of inputs used and Level $1$fair va lue input estimates require the most judgme nt$.$

$2.$ Standa lone fa ir val ue measurement s can be used if the asset's highest and best use is in

exchange.

$3.$ Using a Black$-$Scho les option pricing model results in a level $2$ classification in the fair

va lue hierarchy.

$4.$ The fair value option can be applied to each individual investment on the date of

acquisition.

$5.$ Leased assets and lease obligat ions can be carried at fair value.

$"6.$ Unlike US GAAP, IFRS requires risk hedging to use the fa ir va lue option."