Page 193 - 2017 TSMC Annual Report

19. PROVISIONS
The Company’s current provisions were provisions for sales returns and allowances.
Year ended December 31, 2017
Balance, beginning of year Provision
Payment
Effect of exchange rate changes
Balance, end of year
Year ended December 31, 2016
Balance, beginning of year Provision
Payment
Effect of exchange rate changes
Balance, end of year
Sales Returns and Allowances
Provisions for sales returns and allowances are estimated based on historical experience and the consideration of varying contractual terms, and are recognized as a reduction of revenue in the same year of the related product sales.
20. BONDS PAYABLE
December 31, 2017
December 31, 2016
Domestic unsecured bonds $ 116,100,000 Overseas unsecured bonds 34,107,850 150,207,850
Less: Discounts on bonds payable (6,728) Less: Current portion (58,401,122)
$
$
154,200,000 37,028,850 191,228,850
(35,293) (38,100,000)
153,093,557
The major terms of domestic unsecured bonds are as follows:
Coupon Rate
1.40%
1.63% 1.29%
Repayment and Interest Payment
Bullet repayment; interest payable annually
The same as above The same as above
(Continued)
Issuance
100-1
100-2
Tranche Issuance Period
A September 2011 to September 2016
B September 2011 to September 2018
A January 2012 to January 2017
Total Amount
$ 10,500,000
7,500,000 10,000,000
- 45 -
- 45 -
$ 91,800,000
$
$
$
$
18,037,789
44,833,557 (48,884,704) (24,855)
13,961,787
10,163,536
36,519,312 (28,569,318) (75,741)
18,037,789