Annual Report 2021

148 Sunny Optical Technology (Group) Company Limited • ANNUAL REPORT 2021 Notes to the Consolidated Financial Statements 綜合財務報表附註 FOR THE YEAR ENDED 31 DECEMBER 2021 截至二零二一年十二月三十一日止年度 3. 綜合財務報表之編製基準及 重要會計政策（續） 3.1 綜合財務報表之編製基準（續） 按公允值交易之金融工具，凡於其後 期間應用以不可觀察輸入數據計量公 允值之估值方法，估值方法應予校 正，以致於首次確認時估值方法之結 果相等於交易價格。 此外，就財務報告目的而言，根據可 觀察公允值計量的輸入數據及公允值 計量的輸入數據對其整體的重要性程 度，公允值計量分為第一級、第二級 或第三級，於下文有所說明： • 第一級輸入數據乃實體於計量日期 可得出之自相同資產或負債於活躍 市場中所報的未調整價格； • 第二級輸入數據乃資產或負債的直 接或間接可觀察輸入數據，惟第一 級所含報價除外；及 • 第三級輸入數據乃自資產或負債的 不可觀察輸入數據。 3. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) 3.1 Basis of preparation of consolidated financial statements (Continued) For financial instruments which are transacted at fair value and a valuation technique that unobservable inputs is to be used to measure fair value in subsequent periods, the valuation technique is calibrated so that at initial recognition the results of the valuation technique equals the transaction price. 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.