Page 209 - TSMC 2019 Annual Report

29. ADDITIONAL INFORMATION OF EXPENSES BY NATURE
a. Depreciation of property, plant and equipment and right-of-use assets
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
$ $
$
$ $
$
$
$
$
256,530,964 24,856,701 24,167
281,411,832
3,069,901 2,402,508
5,472,409 91,418,746
2,609,733 259,596 2,869,329 107,115,281
109,984,610
64,701,955 45,282,655
109,984,610
$ 264,804,741 23,292,299 27,857
$ 288,124,897
$ 2,073,480 2,347,925
$ 4,421,405 $ 85,895,569
$ 2,568,945 281,866 2,850,811 105,364,132
$ 108,214,943
$ 63,597,704 44,617,239
$ 108,214,943
Years Ended December 31 2019 2018
According to TSMC’s Articles of Incorporation, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual profits during the period, respectively.
TSMC 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$23,165,745 thousand and NT$23,570,040 thousand for the years ended December 31, 2019 and 2018, respectively; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.
TSMC’s profit sharing bonus to employees and compensation to directors in the amounts of NT$23,165,745 thousand and NT$360,404 thousand in cash for 2019, respectively, 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, and 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, had been approved by the Board of Directors of TSMC held on February 11, 2020, February 19, 2019 and February 13, 2018,
- 59 -