Page 261 - 2017 TSMC Annual Report

The Company elects only to retrospectively apply IFRS 15 to contracts that were not completed on January 1, 2018 and elects not to restate prior reporting period with the cumulative effect of the initial application recognized at the date of initial application.
The anticipated impact on assets, liabilities and equity when retrospectively applying IFRS 15 on January 1, 2018 is detailed below:
Investments accounted for using equity method
Total effect on assets
Provisions - current Accrued expenses and other
current liabilities Total effect on liabilities Retained earnings
Total effect on equity
$
463,986,364 $ 32,029 $ 32,029
$
(IFRS 15) Note
464,018,393 (1)
- (2) 70,861,211 (2)
Carrying Amount as of December 31,
2017 Adjustments (IAS 18 and Arising from
revenue-related Initial interpretations) Application
Carrying Amount as of January 1, 2018
13,174,825 $ (13,174,825) 57,686,386 13,174,825 $ - 1,233,362,010 $ 32,029 $ 32,029
1,233,394,039 (1)
(1) Prior to the application of IFRS 15, the Company recognizes revenue based on the accounting treatment of the sales of goods. Under IFRS 15, certain subsidiaries and associates accounted for using equity method will change to recognize revenue over time because customers are deemed to have control over the products when the products are manufactured. As a result, the Company will adjust related investments and equity accordingly.
(2) Prior to the application of IFRS 15, the Company recognized the estimation of sales returns and allowance as provisions. Under IFRS 15, the Company recognizes such estimation as refund liability (classified under accrued expenses and other current liabilities).
Except for the aforementioned impact, as of the date the accompanying parent company only financial statements were authorized for issue, the Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the other standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.
c. The IFRSs issued by IASB but not yet endorsed and issued into effect by FSC
New, Revised or Amended Standards and Interpretations
Annual Improvements to IFRSs 2015-2017 Cycle
Amendments to IFRS 9 “Prepayment Features with Negative Compensation”
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”
Effective Date Issued by IASB
January 1, 2019 January 1, 2019
To be determined by IASB (Continued)
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