Page 213 - 2017 TSMC Annual Report

Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
2) Fair value of financial instruments that are measured at fair value on a recurring basis
Fair value hierarchy
The following table presents the Company’s financial assets and liabilities measured at fair value on
a recurring basis:
Financial assets at FVTPL
Held for trading
Forward exchange contracts
Available-for-sale financial assets
Corporate bonds Agency bonds/Agency
mortgage-backed securities Asset-backed securities Government bonds
Publicly traded stocks Commercial paper
Hedging derivative financial assets
Fair value hedges
Interest rate futures contracts
Cash flow hedges
Forward exchange contracts
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts
Hedging derivative financial liabilities
Cash flow hedges
Forward exchange contracts
December 31, 2017
Level 1 Level 2
$ - $ 569,751 $
$ - $ 40,165,148 $
- 29,235,388
- 13,459,545 7,715,980 101,743 2,548,054 - - 148,295
$ 10,264,034 $ 83,110,119 $
$ 27,016 $ - $ - 7,378
$ 27,016 $ 7,378 $
$ - $ 26,709 $
$ - $ 15,562 $
Level 3
Total
$ 569,751
$ 40,165,148
29,235,388 13,459,545 7,817,723 2,548,054 148,295
$ 93,374,153
$ 27,016 7,378 $ 34,394
$ 26,709
$ 15,562
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