Page 276 - 2017 TSMC Annual Report

The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions, such as capital expenditures. These contracts have maturities of 12 months or less.
Outstanding forward exchange contracts consisted of the following:
Maturity Date
December 31, 2017
Sell NT$/Buy EUR February 2018 to May 2018
10. NOTES AND ACCOUNTS RECEIVABLE, NET
Notes and accounts receivable Allowance for doubtful receivables
Notes and accounts receivable, net
Contract Amount (In Thousands)
NT$2,649,104/EUR75,000
December 31, 2017
$ 27,124,552 (469,125)
$ 26,655,427
December 31, 2016
$ 40,492,727 (475,430)
$ 40,017,297
In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month of when the invoice is issued. The allowance for doubtful receivables is assessed by reference to the collectability of receivables by performing the account aging analysis, historical experience and current financial condition of customers.
Except for those impaired, for the rest of the notes and accounts receivable, the account aging analysis at the end of the reporting period is summarized in the following table. There was no impairment concern for the accounts receivable that were past due without recognizing a specific allowance for doubtful receivables since there was no significant change in the credit quality of its customers after the assessment. In addition, the Company’s subsidiary has obtained guarantee of NT$2,427,548 thousand against certain receivables.
Aging analysis of notes and accounts receivable, net
Neither past due nor impaired Past due but not impaired
Past due within 30 days Past due 31-60 days Past due 61-120 days Past due over 121 days
December 31, 2017
December 31, 2016
$ 28,511,717
6,755,262 1,693,463 3,056,855
- $ 40,017,297
- 128 -
- 128 -
$
19,632,314
5,169,209 929,672 582,821 341,411
$ 26,655,427