Page 308 - TSMC 2019 Annual Report

30. 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
$ 27,481 4,132,975 3,504 272,886,863
$ 277,050,823
$ 982,302 1,798 553,905,061
$ 554,889,161
December 31, 2018
$
$ $
$
54,115 5,126,829 23,497 365,119,060
370,323,501
30,232 1,941 310,265,696
310,297,869
and accounts
Note 1: Note 2: Note 3:
Note 4: Note 5:
Financial assets mandatorily measured at FVTPL.
Including notes and accounts receivable (net) and equity 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.
The plans for material treasury activities are reviewed by Audit Committees and/or Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, the corporate treasury function must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties.
c. Market risk
The Company is exposed to the financial market risks, primarily changes in foreign currency exchange rates, interest rates and equity investment prices. A portion of these risks is hedged.
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