Page 208 - 2017 TSMC Annual Report

31. ADDITIONAL INFORMATION OF EXPENSES BY NATURE
a. Depreciation of property, plant and equipment
Recognized in cost of revenue
Recognized in operating expenses
Recognized in other operating income and expenses
b. Amortization of intangible assets
Recognized in cost of revenue Recognized in operating expenses
c. Research and development expenses
d. Employee benefits expenses
Post-employment benefits Defined contribution plans Defined benefit plans
Other employee benefits
Employee benefits expense summarized by function Recognized in cost of revenue
Recognized in operating expenses
$ 235,985,189 19,746,263 64,510
$ 255,795,962
$ 203,476,848 16,583,067 25,083
$ 220,084,998
$ 2,028,492 1,714,914
$ 3,743,406 $ 71,207,703
$ 2,164,900 272,141 2,437,041 97,248,082
$ 99,685,123
$ 58,493,500 41,191,623
$ 99,685,123
Years Ended December 31 2017 2016
$
$ $
$
$
$
$
2,135,521 2,211,215
4,346,736 80,732,463
2,369,940 271,551 2,641,491 101,488,608
104,130,099
61,026,107 43,103,992
104,130,099
In accordance with the amendments to the R.O.C. Company Act in May 2015 and the amended TSMC’s Articles of Incorporation approved by TSMC’s shareholders in its meeting held on June 7, 2016, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual profits during the period, respectively.
TSMC accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period, which amounted to NT$23,019,082 thousand and NT$22,418,339 thousand for the years ended December 31, 2017 and 2016, respectively; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.
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