How does Bb.Q Chicken account for cash and cash equivalents?

NOTE 13 – FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company values its assets and liabilities using the methods of fair value as described in ASC 820, Fair Value Measurements and Disclosures. Under the standard, the Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to active markets for identical assets and liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy ate as follows:

Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted priced that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and amounts derived from valuation models where all significant inputs are observable in active markets.

Level 3 – Unobservable inputs reflect management's assumptions. For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivables and accounts payable; the fair values approximate carrying values due to their short-term maturities. The Company maintains policies and procedures to value instruments using the best and most relevant data available. With regard to Level 3 valuations (including instruments valued by third parties), the Company performs a variety of procedures to assess the reasonableness of the valua

Source: Item 23 — RECEIPTS (FDD pages 62–283)