Page 307 - 2017 TSMC Annual Report

g. Others
Item
Manufacturing expenses
Research and development expenses
Marketing expenses - commission
General and administrative expenses
Related Party Name/Categories
Associates Subsidiaries
Subsidiaries Associates
TSMC Europe Other subsidiaries
Other related parties Subsidiaries
Years Ended December 31 2017 2016
$ 2,098,141 $ 1,376,763 9,318 15,954
$ 2,107,459 $ 1,392,717
$ 2,205,906 $ 2,179,813 69,841 161,671
$ 2,275,747 $ 2,341,484
$ 437,561 $ 451,801 370,243 421,316
$ 807,804 $ 873,117
$ 101,500 $ 60,000 3,910 -
$ 105,410 $ 60,000
The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.
The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses.
The Company deferred the disposal gain/loss derived from sales of property, plant and equipment to
related parties using equity method, and then disposed assets.
h. Compensation of key management personnel
The compensation to directors and other key 2017 and 2016 were as follows:
Short-term employee benefits Post-employment benefits
The compensation to directors and other Compensation Committee of the Company market trends.
recognized such gain/loss over the depreciable lives of the
management personnel for the years ended December 31,
Years Ended December 31
2017
$ 2,071,171 3,375
$ 2,074,546
2016
$ 1,926,654 3,617
$ 1,930,271
key management personnel were determined by the in accordance with the individual performance and the
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