Page 318 - TSMC 2019 Annual Report

h. Others
Item
Manufacturing expenses
Research and development expenses
Marketing expenses - commission
General and administrative expenses
Related Party Name/Categories
Associates Subsidiaries
Subsidiaries Associates
TSMC Europe Other subsidiaries
Other related parties Subsidiaries
Years Ended December 31 2019 2018
$ 2,816,089 $ 2,876,216 35,825 35,603
$ 2,851,914 $ 2,911,819
$ 2,821,204 $ 2,407,068 163,425 83,145
$ 2,984,629 $ 2,490,213
$ 439,147 $ 463,093 419,920 402,973
$ 859,067 $ 866,066
$ 120,000 $ 120,756 3,423 3,426
$ 123,423 $ 124,182
The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.
The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses.
The Company deferred the disposal gain or loss derived from sales of property, plant and equipment to related parties using equity method, and then recognized such gain or loss over the depreciable lives of the disposed assets.
i. Compensation of key management personnel
The compensation to directors and other key management personnel for the years ended December 31, 2019 and 2018 were as follows:
Years Ended December 31
Short-term employee benefits Post-employment benefits
2019
$ 1,822,806 2,330
$ 1,825,136
2018
$ 1,906,266 3,041
$ 1,909,307
The compensation to directors and other key management personnel were determined by the Compensation Committee of the Company in accordance with the individual performance and the market trends.
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