NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) Current versus non-current classification Fair value measurement The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is  classified as current when it is: All other assets are classified as non-current. A liability is classified as current when: The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The Company measures financial instruments, such as derivatives and non-financial assets, at fair value at each balance sheet date. Fair  values of financial instruments measured at amortized cost are disclosed in  note 23 . Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market  participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or  transfer the liability takes place either: The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or  liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using  the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair  value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value  hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers  have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair  value measurement as a whole) at the end of each reporting period. External valuers are involved for valuation of significant assets and liabilities. Involvement of external valuers is decided upon annually by  management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.  Management decides, after discussions with the Company’s external valuers, which valuation techniques and inputs to use for each case. For recurring and non-recurring fair value measurements categorized within Level 3 of the fair value hierarchy, at each reporting date, the  Company’s internal valuation team analyzes the movements in the values of assets and liabilities which are required to be re-measured or  re-assessed as per the Company’s accounting policies. For this analysis, the valuation team verifies the major inputs applied in the latest  valuation by agreeing the information in the valuation computation to contracts and other relevant documents. The valuation team, in conjunction with the Company’s external valuers, also compares each of the changes in the fair value of each asset  and liability with relevant external sources to determine whether the change is reasonable. • Expected to be realized or intended to be sold or consumed in a normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realized within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the  reporting period. • It is expected to be settled in normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. • Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities; • Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly  observable; or • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. HIGH LINER FOODS INCORPORATED 62