Page 207 - TSMC 2020 Annual Report

3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.
Assuming the expected salary rate increases by 0.5% at the end of the reporting period and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$835,964 thousand and NT$706,502 thousand as of December 31, 2020 and 2019, respectively.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability.
The Company expects to make contributions of NT$229,934 thousand to the defined benefit plans in the next year starting from December 31, 2020. The weighted average duration of the defined benefit obligation is 9 years.
21. GUARANTEEDEPOSITS
- $ 349,999
Current portion (classified under accrued expenses and other current
liabilities) $ 84,400 Noncurrent portion 265,599
Capacity guarantee $
Others 349,999
December 31, 2020
December 31, 2019
$ 1,499,400 230,481
$ 1,729,881
$ 1,552,977 176,904
$ 349,999
Some of guarantee deposits were refunded to customers by offsetting related accounts receivable.
22. EQUITY
a. Capital stock
Authorized shares (in thousands) Authorized capital
Issued and paid shares (in thousands) Issued capital
December 31, 2020
28,050,000 $ 280,500,000 25,930,380 $ 259,303,805
$ 1,729,881
December 31, 2019
28,050,000 $ 280,500,000 25,930,380 $ 259,303,805
A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends.
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