Page 165 - 2017 TSMC Annual Report

The other financial assets which do not meet the aforementioned criteria should be measured at the fair value through profit or loss (FVTPL). However, the entity may irrevocably designate an investment in equity instruments that is not held for trading as measured at FVTOCI. All relevant gains and losses shall be recognized in other comprehensive income, except for dividends which are recognized in profit or loss. No subsequent impairment assessment is required, and the cumulative gain or loss previously recognized in other comprehensive income cannot be reclassified from equity to profit or loss.
IFRS 9 adds a new expected loss impairment model to measure the impairment of financial assets. A loss allowance for expected credit losses should be recognized on financial assets measured at amortized cost and investments in debt instruments measured at fair value through other comprehensive income. If the credit risk on a financial instrument has not increased significantly since initial recognition, the loss allowance for that financial instrument should be measured at an amount equal to 12-month expected credit losses. If the credit risk on a financial instrument has increased significantly since initial recognition and is not deemed to be a low credit risk, the loss allowance for that financial instrument should be measured at an amount equal to the lifetime expected credit losses. A simplified approach is allowed for accounts receivables and the loss allowance could be measured at an amount equal to lifetime expected credit losses.
The Company elects not to restate prior reporting period when applying the requirements for the classification, measurement and impairment of financial assets and financial liabilities under IFRS 9 with the cumulative effect of the initial application recognized at the date of initial application.
The anticipated impact on measurement categories, carrying amount and related reconciliation for
each class of the Company’s financial assets and financial liabilities when retrospectively applying
IFRS 9 on January 1, 2018 is detailed below:
Measurement Category
Carrying Amount
Financial Assets
Cash and cash equivalents Derivatives
Equity securities Debt securities
Notes and accounts receivable (including related parties), other receivables and refundable deposits
Financial Liabilities
Derivatives
Short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, accrued expenses and other current liabilities, bonds payable and guarantee deposits
IAS 39
Loans and receivables Held for trading Hedging instruments Available-for-sale Available-for-sale
Held-to-maturity Loans and receivables
Held for trading Hedging instruments Amortized cost
IFRS 9
Amortized cost
Mandatorily at FVTPL
Hedging instruments
FVTOCI 7,422,311
Mandatorily at FVTPL - 779,489 (3)
- 17 -
- 17 -
FVTOCI 90,826,099
90,046,610 (3)
20,813,462 (4) 131,269,731 (1)
$ 26,709 15,562 340,501,266
Amortized cost Amortized cost
Mandatorily at FVTPL Hedging instruments Amortized cost
$
20,821,714 131,024,958
26,709
15,562 340,501,266
IAS 39
IFRS 9 Note
$ 553,391,696 569,751 34,394
$ 553,391,696 (1) 569,751
34,394 8,389,438 (2)