FirstService Corp

Fair value

The Company uses the fair value measurements framework for financial assets and liabilities and for non-financial assets and liabilities that are recognized or disclosed at fair value on a non-recurring basis. The framework defines fair value, gives guidance for measurement and disclosure, and establishes athree-level hierarchy for observable and unobservable inputs used to measure fair value. The classification of an asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Thethree levels are as follows:

Level1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level2 – Observable market-based inputs other than quoted prices in active markets for identical assets or liabilities

Level3 – Unobservable inputs for which there is little orno market data, which requires the Company to develop its own assumptions