Page 312 - TSMC 2019 Annual Report

f. Fair value of financial instruments
1) Fair value measurements recognized in the parent company only balance sheets
Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:
 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
 Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
 Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
2) Fair value of financial instruments that are measured at fair value on a recurring basis Fair value hierarchy
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis:
December 31, 2019
Financial assets at FVTPL
Mandatorily measured at FVTPL Forward exchange contracts
Financial assets at FVTOCI
Investments in equity instruments Non-publicly traded equity
investments
Notes and accounts receivable, net
Hedging financial assets
Cash flow hedges
Forward exchange contracts
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts
Hedging financial liabilities
Cash flow hedges
Forward exchange contracts
Level 1 Level 2
$ - $ 27,481
$ - $ - - 3,255,865
$ - $ 3,255,865
$ - $ 3,504
$ - $ 982,302
$ - $ 1,798
Level 3
$-
$ 877,110 -
$ 877,110
$-
$-
$-
Total
$ 27,481
$ 877,110 3,255,865
$ 4,132,975
$ 3,504
$ 982,302
$ 1,798
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