Page 320 - TSMC 2020 Annual Report

26. 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
$ $
$ $
$
$
$
$
288,762,450 24,585,627 31,609
313,379,686
4,732,478 2,315,216
7,047,694
2,309,527 204,915 2,514,442 123,287,720
125,802,162
75,864,049 49,938,113
125,802,162
$ 243,160,463 24,285,569 18,511
$ 267,464,543
$ 2,971,336 2,367,550
$ 5,338,886
$ 2,063,508 259,596 2,323,104 94,236,265
$ 96,559,369
$ 58,502,618 38,056,751
$ 96,559,369
Years Ended December 31 2020 2019
According to the Company’s Articles of Incorporation, the Company shall allocate compensation to directors and profit sharing bonus to employees of the Company not more than 0.3% and not less than 1% of annual profits during the period, respectively.
The Company 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 parent company only 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
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