Annual Report 2020

82 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 綜合財務報表附註 FOR THE YEAR ENDED 31ST DECEMBER, 2020 截至二零二零年十二月三十一日止年度 HOP FUNG GROUP HOLDINGS LIMITED 合豐集團控股有限公司 3. 綜合財務報表編製基準及主要會計政策 （續） 綜合財務報表編製基準 （續） 此外，就財務報告而言，公平值計量根據公平值計 量的輸入數據的可觀察程度及公平值計量的輸入數 據對其整體的重要性分類為第一級、第二級或第三 級，詳情如下： • 第一級輸入數據是實體於計量日可以取得的 相同資產或負債於活躍市場之報價（未經調 整）； • 第二級輸入數據是資產或負債的直接或間接 地可觀察之輸入數據（第一級內包括的報價除 外）；及 • 第三級輸入數據是資產或負債的不可觀察輸 入數據。 主要會計政策 綜合基準 綜合財務報表包括本公司及受本公司及其附屬公司 控制之實體之財務報表。當本公司符合以下要素 時，則本公司取得控制權： • 對被投資方具有權力； • 因參與被投資方業務而承擔可變回報之風險 或享有可變回報之權利；及 • 可對被投資方使用權力以影響其回報。 倘事實及情況顯示上文所示三項控制權因素其中一 項或多項有變，則本集團會重估是否仍然控制被投 資方。 3. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of preparation of consolidated financial statements (Continued) In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and • Level 3 inputs are unobservable inputs for the asset or liability. Significant accounting policies Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company and its subsidiaries. Control is achieved when the Company: • has power over the investee; • is exposed, or has rights, to variable returns from its involvement with the investee; and • has the ability to use its power to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.