A company measures the fair value of an asset using both a quoted price for a similar asset in an active market (Level 2 input) and a discounted cash flow model using significant unobservable inputs (Level 3 input). If the measurement incorporates significant Level 3 inputs, which level of the fair value hierarchy must the final measurement be categorized under?

Oak Co owns a property that it measures at fair value in accordance with IFRS Accounting Standards. Oak Co is unsure whether it should determine fair value: Method 1: Using an observable market price for a similar property in the same location, adjusted for differences Method 2: By discounting its future cash flow projections related to the property using the rate at which it could obtain borrowings Which statement best reflects the requirements of IFRS 13 Fair Value Measurement?

Ruby Co holds an investment in unquoted equity shares of a private company, Emerald Co. There is no active market for Emerald Co's shares. To determine the fair value at the reporting date, Ruby Co uses a valuation model based on Emerald Co's expected future cash flows, discounted at a rate that reflects current market interest rates for similar businesses. Ruby Co also considers a recent transaction where a small block of similar unquoted shares was sold by another investor, though this required a significant liquidity adjustment. In accordance with the IFRS 13 fair value hierarchy, which of the following correctly classifies the inputs used by Ruby Co and the resulting fair value measurement?