EPLUS INC Fair Value Disclosure
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Fair Value
Measurement Using
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Recorded
Amount
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Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
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Significant
Other
Observable
Inputs (Level 2)
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Significant
Unobservable
Inputs
(Level 3)
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March 31, 2025
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Assets:
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Money market funds
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$ | 280,067 | $ | 280,067 | $ | - | $ | - | |||||||
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March 31, 2024
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Assets:
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Money market funds
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$ | 179,709 | $ | 179,709 | $ | - | $ | - | |||||||
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.