Page 327 - TSMC 2018 Annual Report

Level 1
$ - $ 2,393,555
$ -
$ -
December 31, 2017
Level 2
$ 373,351 $ -
$ 7,378
$ 18,764
Level 3
Total
373,351 2,393,555
7,378
18,764
15,562
Financial assets at FVTPL
Held for trading
Forward exchange contracts
Available-for-sale financial assets
Publicly traded stocks
Hedging derivative financial assets
Cash flow hedges
Forward exchange contracts
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts
Hedging derivative financial liabilities
$ $
$
$
- $
- $
- $
- $
- $
Cash flow hedges
Forward exchange contracts
$ -
Reconciliation of Level 3 fair value measurements of financial assets
$ 15,562
$
The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI. Reconciliations for the year ended December 31, 2018 were as follows:
Balance at January 1, 2018
Recognized in other comprehensive income
Disposals and proceeds from return of capital of investments
Balance at December 31, 2018
Valuation techniques and assumptions used in Level 2 fair value measurement
The fair values of financial assets and financial liabilities are determined as follows:
$ 983,590 (16,524) (3,456)
$ 963,610
 Forward exchange contracts are measured using forward exchange rates and the discounted yield curves that are derived from quoted market prices.
 The fair value of accounts receivables classified as at FVTOCI are determined by the present value of future cash flows based on the discount rate that reflects the credit risk of counterparties.
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