Page 304 - 2017 TSMC Annual Report

In the fourth quarter of 2017, the Company reassessed the bid-ask spread and the transaction volume of the fixed income securities in determining whether there were quoted prices in active markets. Accordingly, the Company classified the fair value hierarchy levels of corporate bonds and bonds payable as level 2. To have consistent comparative basis, the Company had revised prior year classification from level 1 to level 2.
Valuation techniques and assumptions used in Level 2 fair value measurement The fair values of corporate bonds are determined by quoted market prices.
The fair value of commercial paper is determined by the present value of future cash flows based on the discounted curves that are derived from the quoted market prices.
The fair value of the Company’s bonds payable is determined by quoted market prices. 32. RELATED PARTY TRANSACTIONS
The significant transactions between the Company and its related parties, other than those disclosed in other notes, are summarized as follows:
a. Related party name and categories
Related Party Name
TSMC Global
TSMC China
TSMC Nanjing VisEra Tech
TSMC North America TSMC Europe
TSMC Japan
TSMC Korea
TSMC Solar Europe GmbH
TSMC Design Technology Canada Inc. (TSMC Canada) TSMC Technology, Inc. (TSMC Technology) WaferTech, LLC (WaferTech)
GUC
VIS
SSMC
Xintec
TSMC Education and Culture Foundation
TSMC Charity Foundation
Related Party Categories
Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Indirect Subsidiaries Indirect Subsidiaries Indirect Subsidiaries Associates Associates Associates Associates
Other related parties Other related parties
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