Keshk, Walied; Lu, HungYuan Richard; Mande, Vivek (2020). How have US banks adopted the Financial Accounting Standards Board's Level 3 fair value disclosure rules? Accounting & Finance 60, April Supplement S1, 693-727.

1. Read from the beginning until page 701 (hypothesis 3), and the conclusion on page 720. Summarize in your own words (about 100 words).

2. Explain the difference between Levels 1, 2, and 3. Keshk et al (2020) categorize levels 1,2 together, so you are free to do so but are not required. You may cite and reference other sources to answer this question.

3. If you were an auditor, which type of estimate requires more work to audit Levels 1,2 or Level 3? Explain.

4. In light of what you have learned, do you understand the following question better (see next page)? If so, please explain