| 2.16. | Fair Value Measurements |
Several accounting policies and disclosures require fair value measurement, for both financial and non-financial assets and liabilities.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
| • | Level 1 — unadjusted quoted prices in active markets for identical assets or liabilities. |
| • | Level 2 — inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly or indirectly |
| • | Level 3 — inputs for the assets or liability that are not based on observable market data. |
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Note 19 includes accounting classification and fair value measurement of financial instruments.