Page 304 - TSMC 2018 Annual Report

15. SHORT-TERM LOANS
Unsecured loans
Related parties unsecured loans
Original loan content US$ (in thousands) EUR(in thousands) Annual interest rate Maturity date
$
$
$
63,766,850 -
91,982,340
2,150,000 -
December 31, 2018
$ 88,754,640 3,227,700
$ 91,982,340
$ 2,715,000 242,000 0.01%-3.22%
Due by April 2019
December 31, 2017
The annual interest rate of short-term loans from related parties was not significantly different from those of sales to third parties.
16. PROVISIONS
The Company’s current provisions were provisions for sales returns and allowances.
Year Ended December 31, 2017
Balance, beginning of year Provision
Payment
Balance, end of year
Sales Returns and Allowances
$ 16,991,612 44,244,876
(48,061,663) $ 13,174,825
1.54%-1.82%
Due by February 2018
Provisions for sales returns and allowances are estimated based on historical experience and the consideration of varying contractual terms, and are recognized as a reduction of revenue in the same year of the related product sales.
Starting from 2018, the Company recognizes the estimation of sales returns and allowance as refund liability (classified under accrued expenses and other current liabilities) upon initial application of IFRS 15.
17. BONDS PAYABLE
Domestic unsecured bonds Less: Current portion
December 31, 2018
$ 91,800,000 (34,900,000)
$ 56,900,000
December 31, 2017
$ 116,100,000 (24,300,000)
$ 91,800,000
- 157 -