Page 217 - TSMC 2020 Annual Report

29. ADDITIONAL INFORMATION OF EXPENSES BY NATURE
a. Depreciation of property, plant and equipment and right-of-use assets
Recognized in cost of revenue
Recognized in operating expenses
Recognized in other operating income and expenses
b. Amortization of intangible assets
Recognized in cost of revenue Recognized in operating expenses
c. Employee benefits expenses
Post-employment benefits Defined contribution plans Defined benefit plans
Other employee benefits
Employee benefits expense summarized by function Recognized in cost of revenue
Recognized in operating expenses
$ $
$ $
$
$
$
$
299,311,405 25,191,358 35,680
324,538,443
4,837,728 2,348,520
7,186,248
2,809,484 204,915 3,014,399 137,803,038
140, 817,437
83,098,994 57,718,443
140,817,437
$ 256,530,964 24,856,701 24,167
$ 281,411,832
$ 3,069,901 2,402,508
$ 5,472,409
$ 2,609,733 259,596 2,869,329 107,115,281
$ 109,984,610
$ 64,701,955 45,282,655
$ 109,984,610
Years Ended December 31 2020 2019
According to TSMC’s Articles of Incorporation, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual profits during the period, respectively.
TSMC accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate. Accrued profit sharing bonus to employees is illustrated below:
Years Ended December 31 2020 2019
Profit sharing bonus to employees $ 34,753,184 $ 23,165,745
- 58 -
- 58 -