Page 225 - TSMC 2018 Annual Report

3) Fair value of financial instruments that are not measured at fair value
Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the consolidated financial statements that are not measured at fair value approximate their fair values.
Fair value hierarchy
The table below sets out the fair value hierarchy for the Company’s assets and liabilities which are
not required to measure at fair value:
Carrying Amount
$ 19,511,794 2,294,098
$ 21,805,892
$ 91,800,000
Carrying Amount
$ 19,338,764 1,482,950
$ 20,821,714
December 31, 2018
Level 1
Level 2
Fair Value
Level 3
Total
$ 19,554,553 2,296,188
$ 21,850,741
$ 93,171,255
Total
$ 19,541,419 1,475,350
$ 21,016,769
$ 152,077,728
Financial assets
Financial assets at amortized costs Corporate bonds
Commercial paper
Financial liabilities
Financial liabilities at amortized costs Bonds payable
Financial assets
Held-to-maturity securities Corporate bonds Structured product
Financial liabilities
$ $
$
$ $
- -
-
-
- -
-
$ 19,554,553 2,296,188
$ 21,850,741
$ 93,171,255
December 31, 2017
$ $
$
- -
-
-
- -
-
-
Level 1
Level 2
Fair Value
Level 3
$ $
19,541,419 $ 1,475,350
21,016,769 $
Measured at amortized cost Bonds payable
$ 150,201,122
Valuation techniques and assumptions used in Level 2 fair value measurement
$
-
$ 152,077,728 $
The fair value of corporate bonds is determined by quoted market prices provided by third party pricing services. The fair value of structured product is determined by quoted market prices provided by the counterparty.
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 provided by
third party pricing services.
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