Problem
Another note to the statements indicates that the foundation has made grants to various other organi-zations. Some of these are payable over a five-year period. Accordingly it adjusted its grants payable account to take into account the time value of money and applied a discount rate of 3 percent. However per the note, the grants are classified as Level 3 in accordance with the fair value hierarchy and have been valued using an income approach. What are the different valuation techniques? What are level 3 classifications? Explain this in simple words.