Page 320 - TSMC 2018 Annual Report

28. ADDITIONAL INFORMATION OF EXPENSES BY NATURE
Years Ended December 31 2018 2017
a. Depreciation of property, plant and equipment
Recognized in cost of revenue
Recognized in operating expenses
Recognized in other operating income and expenses
b. Amortization of intangible assets
Recognized in cost of revenue Recognized in operating expenses
c. Research and development costs expensed as incurred
d. Employee benefits expenses
Post-employment benefits Defined contribution plans Defined benefit plans
Other employee benefits
Employee benefits expense summarized by function Recognized in cost of revenue
Recognized in operating expenses
$ $
$
$ $
$
$
$
$
251,292,565 23,020,118 27,857
274,340,540
2,018,702 2,334,145
4,352,847 84,944,461
2,028,928 281,866 2,310,794 93,694,021
96,004,815
57,733,597 38,271,218
96,004,815
$ 231,042,615 19,490,010 64,510
$ 250,597,135
$ 2,119,899 2,205,129
$ 4,325,028 $ 79,887,723
$ 1,905,444 271,551 2,176,995 90,611,476
$ 92,788,471
$ 55,902,877 36,885,594
$ 92,788,471
According to the Company’s Articles of Incorporation, the Company shall allocate compensation to directors and profit sharing bonus to employees of the Company not more than 0.3% and not less than 1% of annual profits during the period, respectively.
The Company accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period, which amounted to NT$23,570,040 thousand and NT$23,019,082 thousand for the years ended December 31, 2018 and 2017, respectively; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.
The Company’s profit sharing bonus to employees and compensation to directors in the amounts of NT$23,570,040 thousand and NT$349,272 thousand in cash for 2018, respectively, profit sharing bonus to employees and compensation to directors in the amounts of NT$23,019,082 thousand and NT$368,919 thousand in cash for 2017, respectively, and profit sharing bonus to employees and compensation to directors in the amounts of NT$22,418,339 thousand and NT$376,432 thousand in cash for 2016, respectively, had been approved by the Board of Directors of the Company held on February 19, 2019, February 13, 2018 and February 14, 2017, respectively. There is no significant difference between the
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