Instructions: Explain when (if at all) the asset or liability would require subsequent measurement at fair value. Cite the supporting Codification paragraph(s). Do not include excerpts from the Codification. Additionally. if fair value measurement is subsequently required or allowed, explain the likely level of the fair value hierarchy (Level 1, 2, or 3) to be used and the valuation technique (market, cost, or income) that would most likely apply.

At fiscal year-end, a company owns an in-the-money forward contract to buy shares of a public company (a derivative asset).