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Notes to the consolidated financial statements

37. Fair value of financial instruments

The fair value is a price the Group would receive for the sale of an asset or pay for the transfer of a liability in a transaction carried out on an arm’s length terms as at the measurement date.

As at 31 December 2016 and 31 December 2015, the Group classified financial assets and liabilities not measured at fair value as well as financial assets and liabilities which are measured at fair value in the consolidated statement of financial position in the following manner:

• Level I: financial assets/liabilities measured based on quoted (unadjusted) prices on active markets for identical assets or liabilities, available to the Group at the measurement date.
• Level II: financial assets/liabilities measured based on input data other than quoted prices, as specified for Level I, observable for an asset or liability either indirectly or directly.
• Level III: financial assets/liabilities measured based on non-observable input data concerning an asset or liability.