Page 303 - TSMC 2018 Annual Report

13. INTANGIBLEASSETS
Cost
Balance at January 1, 2018 Additions
Disposals or retirements
Balance at December 31, 2018
Accumulated amortization and impairment
Balance at January 1, 2018 Additions
Disposals or retirements
Balance at December 31, 2018
Carrying amounts at December 31, 2018
Cost
Balance at January 1, 2017 Additions
Balance at December 31, 2017
Accumulated amortization and impairment
Balance at January 1, 2017 Additions
Balance at December 31, 2017
Carrying amounts at December 31, 2017
Technology Goodwill License Fees
$ 1,567,756 $ 10,388,175 - 533,669 - -
$ 1,567,756 $ 10,921,844
$ - $ 7,639,775 - 1,063,616 - -
$ - $ 8,703,391 $ 1,567,756 $ 2,218,453
$ 1,567,756 $ 9,490,320 - 897,855
$ 1,567,756 $ 10,388,175
$ - $ 6,091,513 - 1,548,262
$ - $ 7,639,775 $ 1,567,756 $ 2,748,400
Software and System Design Costs
$ 24,963,709 4,361,894
(185,592 ) $ 29,140,011
$ 20,282,457 2,766,396
(185,534 ) $ 22,863,319 $ 6,276,692
$ 22,063,589 2,900,120
$ 24,963,709
$ 17,991,500 2,290,957
$ 20,282,457 $ 4,681,252
Patent and
Others Total
$ 5,590,392 $ 42,510,032 2,017,145 6,912,708
- (185,592 ) $ 7,607,537 $ 49,237,148
$ 4,717,673 $ 32,639,905 522,835 4,352,847
- (185,534 ) $ 5,240,508 $ 36,807,218 $ 2,367,029 $ 12,429,930
$ 5,241,203 $ 38,362,868 349,189 4,147,164
$ 5,590,392 $ 42,510,032
$ 4,231,864 $ 28,314,877 485,809 4,325,028
$ 4,717,673 $ 32,639,905 $ 872,719 $ 9,870,127
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 years ended December 31, 2018 and 2017, the Company did not recognize any impairment loss on goodwill.
14. OTHERASSETS
Tax receivable Prepaid expenses Others
December 31, 2018
$ 3,245,082 939,176 660
$ 4,184,918
December 31, 2017
$
$ 2,484,792
1,992,258 492,247 287
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