Page 211 - TSMC 2019 Annual Report

31. CAPITAL MANAGEMENT
The Company requires significant amounts of capital to build and expand its production facilities and acquire additional equipment. In consideration of the industry dynamics, the Company manages its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, capital asset purchases, research and development activities, dividend payments, debt service requirements and other business requirements associated with its existing operations over the next 12 months.
32. FINANCIAL INSTRUMENTS
a. Categories of financial instruments
Financial assets
FVTPL (Note 1) FVTOCI (Note 2) Hedging financial assets Amortized cost (Note 3)
Financial liabilities
FVTPL (Note 4)
Hedging financial liabilities Amortized cost (Note 5)
December 31, 2019
December 31, 2018
$
$ $
$
326,839 134,776,779 25,884 612,740,640
747,870,142
982,349 1,798 533,581,640
534,565,787
$
$ $
$
3,504,590 107,067,490 23,497 745,585,774
856,181,351
40,825 155,832 318,475,704
318,672,361
and accounts
Note 1: Note 2: Note 3:
Note 4: Note 5:
Financial assets mandatorily measured at FVTPL.
Including notes and accounts receivable (net), equity and debt investments.
Including cash and cash equivalents, financial assets at amortized cost, notes receivable (including related parties), other receivables and refundable deposits.
Held for trading.
Including short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, cash dividends payable, accrued expenses and other current liabilities, bonds payable and guarantee deposits.
b. Financial risk management objectives
The Company seeks to ensure that sufficient cost-efficient funding is readily available when needed. The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit risk and liquidity risk with the objective to reduce the potentially adverse effects the market uncertainties may have on its financial performance.
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