 Today we are working valuation techniques, hierarchy of peer value determination. Now there are number of assets and number of liabilities. So first of all let us see non-financial assets. Non-financial assets are fixed assets, property, plant and equipment, motor vehicles, machinery etc. So how to determine their price, the use, highest and best use of assets and liabilities. I just explained that highest and best use is that economically it is possible, legally it is permissible and financially it is feasible. We have to keep in mind that these three things are there, then we should work out what is the most likely price we can get, the best right wise we can get. Principal and most advantageous market is the one which maximizes the amount that would be received for the sale or minimizes the amount that would have been paid for transfer the liability. Again here the maximum price you can get on selling an asset and minimum price we pay for transfer of liabilities. So that will be the one, would be paid with transfer of liability after transport cost and transaction cost. But do remember we are not supposed to deduct transaction cost out of when we calculate the most advantages market. The principal market is one which is greater volume, the numbers are being sold is large and level of activity for assets and liability can be assessed by the entity. Now if you look into Faisalabad market of cotton fabric sector or cotton yarn, it is a huge market and there is market in Lahore also, we have to look at the principal market, the large volume of goods and services that are being sold, we have to look at the market and see what is its price. The equity investments, what is equity investment is that you buy shares of any company. So you have given a price, you have done that investment, you have shown it in the balance sheet, so the question is what price you have to record for the balance sheet, how to put the adjustment, because we have to bring it to fair value. So fair value is that use quoted market price, quoted is our stock exchange, so the price that is quoted in stock exchange without any adjustment, we will take it as a fair market value. So the principal market or a similar product use most advantageous price, we will have to select prices as well, we have to be very careful, we have to select the most feasible, the maximum amount to receive to sell the assets and to pay the minimum price of liability. If you want to sell the asset, then we have to look at the maximum amount received. And if you want to transfer the liability, then the liability transfer is not settled, the transfer means that you are selling your liability to someone else. If you are selling your liability to someone else, then you have to pay the minimum amount. Financial assets and liabilities business model of entity is to recover contractual cash flow arising on certain date. Now we have to be careful about business model. If you have decided that you have to take it to cost, then you have to record it at historical cost, not at fair value, then you can go to historical, but the requirement is that you bring it at fair value. Because fair value is the most recommended method. Because the cost method is that you take it at cost and then amortize it to pay off the amount and how much its price will come out. But financial assets are basically clear that we have to get so much money after a year. We have to pay off after so many years in this liability. So this amount is already determined, but still for the balance sheet purpose, financial statement purpose, we need to work out their value as well, fair value. Now hierarchy of fair value. This is an important issue that how we have to take this fair value. It has three levels, level one, level two, level three. Level one is observable inputs. Here I want to clear something to make it easier to understand. Look, market has three conditions. One is strong market. What is strong market? Everybody knows what is going on. Everyone knows, there is nothing hidden. One is semi-strong market. Some know, some don't. Some know what is written in the news. And one is weak market. Some know what is weak, but some don't know anything about it. They simply believe that they don't know. Similarly in this case, level one is observable input that reflects quoted price for identical assets or liability in active market. The market in which they are buying and selling, you have full information about it. In level two, input other than quoted price within the level one that are observable for the assets or liability either directly or through collaboration with observable data or similar active market. If you are not getting quoted price, then we will see that the market in which we are selling and we will see similar market. And from there, its observable, again, which you can assess, which you can calculate. And in level three, unabsorbable input, companies own data or assumption. This is least recommended, that the company should determine the value of assets or liability but in that, they have set the condition that if you want to do it on your own, then whatever financial or cash flow you see, check that cash flow properly, that whatever assumption we have taken is correct. That is why the interest rate we use to get the present value is also for that which rate you will use. So this is least recommended. If you do not want to go to first or two, then come to third and calculate. This is highest and best used, physical possible, legally permissible and financial feasible. This is about level three, that if you have the best advantages market, the best use, highest and best use, be consistent to use valuation techniques, use observable input, avoid unabsorberable input. You can see the things you can observe that if this is going on, use it and avoid unabsorberable. Let's look at some more details. Level one input or quoted price is unadjusted. In active market for items identical to the assets and liabilities being measured, one example of this would be price quoted on stock exchanges. The entity needs to be able to assess the market at the measurement date. Active market are ones where transaction took place with sufficient frequency and volume for pricing information to be provided. So two things. Sufficient, maximum, means more and more output is being sold. Alternative method, maybe used where the price quoted in an active market does not represent fair value at the measurement date. An example of this would be where significant event took place after the close of the market such as business reorganization and combination. It happens sometimes that your business market is there, but if you reorganize it yourself, then you have to consider the best use. To determine whether a fair value measurement is level two or three inputs depend on whether the inputs are observable input or unobservable input. Level two inputs are input other than quoted price and level one that are directly or indirectly observable from the assets and liability. They are quoted assets or liabilities for similar items in active market are supported by market data. Level three inputs are unobservable input and the use of these inputs should be kept to minimum. In this case, at least we should try to use observable inputs. Casual forecast may be used to value an entity that is not listed. Listed companies get the pricing from stock exchange, but it is difficult to determine their price on the listed stock exchange. For that, you should take the information of your third level and generate it yourself. How to make cash flow, discount it and use the figure as a fair value. Thank you very much.