Page 224 - TSMC 2020 Annual Report

f. Fair value of financial instruments
1) Fair value measurements recognized in the consolidated balance sheets
Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The timing of transfers between levels within the fair value hierarchy is at the end of reporting period.
2) Fair value of financial instruments that are measured at fair value on a recurring basis Fair value hierarchy
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis:
Financial assets at FVTPL
Mandatorily measured at FVTPL Forward exchange contracts
Financial assets at FVTOCI
Investments in debt instruments Corporate bonds
Agency bonds/Agency
mortgage-backed securities Government bonds Asset-backed securities
Investments in equity instruments Non-publicly traded equity
investments Publicly traded stocks
Notes and accounts receivable, net
Hedging financial assets
Fair value hedges
Interest rate futures contracts
Level 2
$ 2,259,412
$ 56,593,623
43,977,113 180,349 8,368,264
-
- 2,955,301
$ 112,074,650
$-
Level 3
- - -
4,514,940 - -
$ 4,514,940
$-
Total
$ 2,259,412
$ 56,593,623
43,977,113 13,459,503 8,368,264
4,514,940 49,950 2,955,301
$ 129,918,694
$ 47 (Continued)
Level 1
$ -
$ -
- 13,279,154 -
- 49,950 -
$ 13,329,104
$ 47
December 31, 2020
$
$
-
-
- 65 -
- 65 -