Question 2 (2 Marks) The objectives of IFRS 13 Fair Value Measurement include establishing a common denition of fair value and common guidance for fair value measurement. The standard prescribes the following fair value measurement hierarchy (in descending order). Level 1 Quoted price for an identical asset or liability Level 2 Observable prices other than those included within Level 1 Level 3 Unobservable inputs for the asset or liability. Explain how the enhancing qualitative characteristics, comparability and verifiability, are applied in the requirements of [FRS l3