Page 194 - TSMC 2020 Annual Report

All of the Company’s accounts receivable classified as at FVTOCI were not past due. Movements of the loss allowance for accounts receivable
Years Ended December 31
2020
Balance, beginning of year $ 325,325 Provision (Reversal) (78,474) Effect of exchange rate changes (225)
Balance, end of year $ 246,626
$
$
2019
7,253 318,290
(218) 325,325
For the years ended December 31, 2020 and 2019, the changes in loss allowance were mainly due to the variations in the balance of accounts receivable of different risk levels.
12. INVENTORIES
Finished goods
Work in process
Raw materials
Supplies and spare parts
December 31, 2020
$ 21,705,625 91,672,870 14,715,963 9,258,949
$ 137,353,407
December 31, 2019
$ 8,924,541 51,969,105 16,552,275 5,535,275
$ 82,981,196
Write-down of inventories to net realizable value and reversal of write-down of inventories resulting from the increase in net realizable value were included in the cost of revenue, as illustrated below:
Years Ended December 31 2020 2019
Inventory losses (reversal of write-down of inventories) $ 3,664,513 $ (1,983,048)
The aforementioned reversal of write-down of inventories for the year ended December 31, 2019 excluded wafer contamination losses. Please refer to related losses in Note 37.
13. INVESTMENTSACCOUNTEDFORUSINGEQUITYMETHOD
Associates consisted of the following:
Name of Associate
Vanguard International Semiconductor Corporation (VIS)
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)
Principal Activities
Manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks
Manufacturing and selling of integrated circuits and other semiconductor devices
December 31, 2020
December 31, 2019
December 31, 2020
28%
39%
December 31, 2019
28%
39% (Continued)
Place of Incorporation and Operation
Hsinchu, Taiwan
Singapore
Carrying Amount
% of Ownership and Voting Rights Held by the Company
$
9,029,890
5,900,245
$
9,027,572
6,502,174
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