Page 193 - TSMC 2020 Annual Report

The effect for the years ended December 31, 2020 and 2019 is detailed below:
Hedging Instruments/Hedged Items
Hedging Instruments
Forward exchange contracts
Hedged Items
Forecast transaction (capital expenditures)
11. NOTESANDACCOUNTSRECEIVABLE,NET
At amortized cost
Notes and accounts receivable Less: Loss allowance
At FVTOCI
Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness
Years Ended December 31
$ $
2020
24,085 (24,085)
2019
$ (109,592) $ 109,592
December 31, 2019
$ 135,978,049 (325,325)
135,652,724 3,255,865
$ 138,908,589
December 31, 2020
$ 142,771,597 (246,626)
142,524,971 2,955,301
$ 145,480,272
The Company signed a contract with the bank to sell certain accounts receivable without recourse and transaction cost required. These accounts receivable are classified as at FVTOCI because they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month when the invoice is issued. Aside from recognizing impairment loss for credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels with consideration of factors of historical loss ratios and customers’ financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days without collaterals or guarantees, the Company recognizes loss allowance at full amount.
Aging analysis of notes and accounts receivable
Not past due Past due
Past due within 30 days Past due 31-60 days Past due 61-120 days Past due over 121 days
Less: Loss allowance
December 31, 2020
$ 140,933,622
4,784,425 8,708 48 95
(246,626) $ 145,480,272
December 31, 2019
$ 126,134,762
13,082,080 12,794 1,033 3,245
(325,325) $ 138,908,589
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