Page 198 - TSMC 2018 Annual Report

18. INTANGIBLEASSETS
Cost
Balance at January 1, 2018 $ 5,648,702 Additions - Disposals or retirements - Effect of exchange rate changes 146,786
Balance at December 31, 2018 $ 5,795,488
Accumulated amortization and impairment
Balance at January 1, 2018 $ - Additions - Disposals or retirements - Effect of exchange rate changes -
Balance at December 31, 2018 $ -
Carrying amounts at December 31, 2018 $ 5,795,488
Cost
Balance at January 1, 2017 $ 6,007,975 Additions - Retirements - Reclassification - Effect of disposal of subsidiary (13,499) Effect of exchange rate changes (345,774)
Balance at December 31, 2017 $ 5,648,702
Accumulated amortization and impairment
Balance at January 1, 2017 $ - Additions - Retirements - Reclassification - Impairment 13,520 Effect of disposal of subsidiary (13,499) Effect of exchange rate changes (21)
Balance at December 31, 2017 $ - Carrying amounts at December 31, 2017 $ 5,648,702
$
$
$
$ $
$
$
$
$ $
10,443,257 533,669 -
(2,468) 10,974,458
7,694,857 1,063,616 -
(2,468) 8,756,005 2,218,453
9,546,007 897,861 - - -
(611) 10,443,257
6,147,200 1,548,263 - - - -
(606) 7,694,857 2,748,400
$
$
$
$ $
$
$
$
$ $
25,186,218 4,601,885
(186,671) (6,949)
29,594,483
20,376,693 2,835,265
(186,615) (1,845)
23,023,498 6,570,985
22,243,595 3,021,085
(75,237) 7,662 (7,662) (3,225)
25,186,218
18,144,428 2,310,742
(75,237) 7,409 -
(7,554) (3,095)
20,376,693 4,809,525
$
$
$
$ $
$
$
$
$ $
$
$
$
$ $
$
$
$
$ $
Goodwill
Technology License Fees
Software and System Design Costs
Patent and Others
5,716,146 1,969,439
(31,183) 2,122
7,656,524
4,747,633 522,524
(31,183) 339
5,239,313 2,417,211
5,386,435 349,265 -
(17,960) -
(1,594) 5,716,146
4,277,538 487,731
- (17,070)
-
- (566)
4,747,633 968,513
Total
46,994,323 7,104,993
(217,854) 139,491
54,020,953
32,819,183 4,421,405
(217,798) (3,974)
37,018,816 17,002,137
43,184,012 4,268,211
(75,237) (10,298) (21,161)
(351,204) 46,994,323
28,569,166 4,346,736
(75,237) (9,661) 13,520
(21,053) (4,288)
32,819,183 14,175,140
The Company’s goodwill has been tested for impairment at the end of the annual reporting period and the
recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rates of 9.0% and 8.5% in its test of impairment as of December 31, 2018 and 2017, respectively, to reflect the relevant specific risk in the cash-generating unit.
For the year ended December 31, 2018, the Company did not recognize any impairment loss on goodwill. For the year ended December 31, 2017, the Company assessed goodwill impairment and recognized an impairment loss of NT$13,520 thousand related to a subsidiary since the operating result of this cash generating unit was not as expected and the recoverable amount of goodwill was nil. Such impairment loss was recognized in other operating income and expenses.
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