Page 168 - TSMC 2018 Annual Report

(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 recognize contract assets (classified under other current assets) and adjust related assets 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).
The following table shows the amount affected in the current period by the application of IFRS 15 as compared to IAS 18:
Impact on Assets, Liabilities and Equity
December 31,
2018
$ (29,610)
52,470
15,163
$ 38,023
$ (22,672,634)
22,671,587 4,781
$ 3,734 $ 31,791
2,498
$ 34,289
Decrease in inventories
Increase in contract assets
Increase in investments accounted for using equity method
Total effect on assets
Decrease in provisions - current
Increase in accrued expenses and other current liabilities Increase in income tax payable
Total effect on liabilities Increase in retained earnings
Increase in non-controlling interests
Total effect on equity
Impact on Total Comprehensive Income
Increase in net revenue
Increase in cost of revenue
Increase in share of the profit or loss of associates
Increase in income tax expense
Increase in net income for the year
Increase in net income/total comprehensive income attributable to: Shareholders of the parent
Non-controlling interests
Year Ended December 31, 2018
$ 53,517
(29,610)
15,163
(4,781)
$ 34,289
$ 31,791 2,498
$ 34,289
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