I am working on developing a methodology to classify various alternative investments into Levels 1, 2, and 3 and I read in ASU 09-12 that I need to consider redemption notice periods, i.e. how much in advance of the measurement date I would need to notify a manager of a redemption.

What is the spirit of this requirement? The measurement date is the same as my reporting date and so the NAV will be be the same regardless.  Does a longer notice period somehow change the risk characteristics of the investment? What makes a 30 day notice period Level 2 and a 90 day notice period Level 3?

Thoughts?

Many thanks,

Jim