Page 293 - TSMC 2019 Annual Report

b. Defined benefit plans
The Company has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds.
Amounts recognized in respect of these defined benefit plans were as follows:
Years Ended December 31
Current service cost
Net interest expense
Components of defined benefit costs recognized in profit or loss Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)
Actuarial loss (gain) arising from experience adjustments Actuarial gain arising from changes in demographic
$
2019
135,645 123,951 259,596
(124,344) (438,009)
2018
137,758 144,108 281,866
(71,288) 334,630
-
597,820
861,162 $ 1,143,028
$
assumptions (233,239)
Actuarial loss arising from changes in financial assumptions Components of defined benefit costs recognized in other
comprehensive income
Total
$
541,697 (253,895)
5,701
The pension costs of the aforementioned defined benefit plans were recognized in profit or loss by the following categories:
Years Ended December 31
Costofrevenue
Research and development expenses General and administrative expenses Marketing expenses
2019
$ 157,845 72,686 25,063 4,002
2018
$ 177,772 79,143 20,591 4,360
$ 281,866
$ 259,596
The amounts arising from the defined benefit obligation of the Company were as follows:
Present value of defined benefit obligation Fair value of plan assets
Net defined benefit liability
December 31, 2019
$ 13,484,090 (4,301,594)
$ 9,182,496
December 31, 2018
$ 13,662,684 (4,011,279)
$ 9,651,405
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