Page 194 - TSMC 2018 Annual Report

Outstanding forward exchange contracts consisted of the following:
Maturity Date
December 31, 2017
Sell NT$/Buy EUR February 2018 to May 2018
14. NOTES AND ACCOUNTS RECEIVABLE, NET
At amortized cost
Notes and accounts receivable Less: Loss allowance
At FVTOCI
Contract Amount (In Thousands)
NT$2,649,104/EUR75,000
December 31, 2018
$ 125,025,575 (7,253)
125,018,322 3,595,069
$ 128,613,391
December 31, 2017
$ 121,604,989 (471,741)
121,133,248 -
$ 121,133,248
The Company signed a contract with the bank to sell certain accounts receivable without recourse and transaction cost required. These accounts receivable are classified as at FVTOCI because they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
2018
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 when the invoice is issued. Aside from recognizing impairment losses on credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels. Such risk levels are determined with factors of historical loss ratios and customers’ financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days without collaterals or guarantees, the Company recognizes loss allowance at full amount.
Aging analysis of notes and accounts receivable, net
Not past due Past due
Past due within 30 days Past due 31-60 days Past due 61-120 days Past due over 121 days
December 31, 2018
$ 113,126,484
15,006,461 472,833 4,654 2,959
$ 128,613,391
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