Page 287 - TSMC 2019 Annual Report

b. Assets subject to operating leases
Cost
Balance at January 1, 2019
Balance at December 31, 2019
Accumulated depreciation
Balance at January 1, 2019 Additions
Balance at December 31, 2019
Carrying amounts at December 31, 2019
Buildings
$ 494,582 $ 494,582
$ 457,657 18,511
$ 476,168
$ 18,414
Operating leases relate to leases of buildings with lease terms between 1 to 2 years. The lessees do not have purchase options to acquire the assets at the expiry of the lease periods.
The maturity analysis of operating lease payments receivable for the buildings is as follows:
Year1 2018
Cost
Balance at January 1, 2018 Additions
Disposals or retirements
Balance at December 31, 2018
Accumulated depreciation and impairment
Balance at January 1, 2018 Additions
Disposals or retirements Impairment
Balance at December 31, 2018
Carrying amounts at December 31, 2018
Land
$ 3,212,000 - -
$ 3,212,000
$ - - - -
$ -
$ 3,212,000
Buildings
$ 357,391,050 24,665,225
(410,891 ) $ 381,645,384
$ 176,623,784 22,534,543
(398,955 ) -
$ 198,759,372
$ 182,886,012
Machinery and Equipment
$ 2,369,226,722 231,468,189
(15,065,446 ) $ 2,585,629,465
$ 1,695,482,201 246,686,584
(11,102,618 ) 423,468
$ 1,931,489,635
$ 654,139,830
Office Equipment
$ 39,403,217 5,036,411
(716,942 ) $ 43,722,686
$ 25,547,912 5,119,413
(716,409 ) -
$ 29,950,916 $ 13,771,770
Equipment under Installation and Construction in Progress
$ 144,776,878 26,500,451 -
$ 171,277,329
$ - - - -
$ - $ 171,277,329
$ 1,458
Total
$ 2,914,009,867 287,670,276
(16,193,279 ) $ 3,185,486,864
$ 1,897,653,897 274,340,540
(12,217,982 ) 423,468
$ 2,160,199,923 $ 1,025,286,941
December 31, 2019
The significant part of the Company’s buildings includes main plants, mechanical and electrical power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively.
For the year ended December 31, 2018, the Company recognized an impairment loss of NT$423,468 thousand for certain machinery and equipment that was assessed to have no future use, and the recoverable amount of certain machinery and equipment was nil. Such impairment loss was recognized in other operating income and expenses.
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