How common is level 2 cash.

[quantumvibes]

Bloomberg just put out an article saying NQ's stock plunge helps rebuild CBlock's short credentials. Unfortunate how they choose not to examine him critically, his practices and the myriad false accusations he's levied against other companies that have been shown to be utterly groundless and self-serving. Lazy journalism and the media's desire to turn these folks into stars I suppose.

Block was quoted in the Bloom article as saying that NQ “cited certain companies elsewhere in China that had all-cash at Level 2, but that is not the case." Anyone know what that's supposed to mean? Or is he just creating more smoke to obfuscate the truth further?

[admin]

From the financial accounting standards board:

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The valuation methodologies used to measure the fair value of the company’s assets, liabilities, and instruments classified in shareholders’ equity are described as follows:

Time deposits and certificates of deposit included in cash equivalents are valued at amortized cost, which approximates fair value. These are included within cash equivalents as a Level 2 measurement in the table below.

 

Commercial paper included in cash equivalents is valued using broker quotes that utilize observable market inputs. These are included as a Level 2 measurement in the table below.

 

Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. These are included within cash equivalents and restricted cash as Level 1 measurements in the table below.

 

The interest rate swap agreements, discussed further in "Derivative Financial Instruments," are valued using a swap valuation model that utilizes an income approach using observable market inputs including interest rates, LIBOR swap rates and credit default swap rates. These are included as a Level 2 measurement in the table below.

 

The residential mortgage-back securities are valued using a discounted cash flow technique. The discounted cash flows included inputs that are categorized as unobservable inputs in the fair value hierarchy. These fair value amounts are included as a Level 3 measurement in the table below.

 

The venture capital investments are valued using a discounted cash flow technique. The discounted cash flows included inputs that are categorized as unobservable inputs in the fair value hierarchy. The fair value of these investments is categorized as a Level 3 measurement in the table below.

 

The fair value of the contingent consideration classified in shareholders’ equity is measured using a market approach and is included as a Level 3 measurement in the table below.