Page 331 - TSMC 2020 Annual Report

i. Others
Item
Manufacturing expenses
Research and development expenses
Marketing expenses - commission
General and administrative expenses
Related Party Name/Categories
Associates Subsidiaries
Subsidiaries Associates
TSMC Europe Other subsidiaries
Other related parties Subsidiaries
Years Ended December 31 2020 2019
$ 5,425,878 $ 2,816,089 29,700 35,825
$ 5,455,578 $ 2,851,914
$ 3,409,037 $ 2,821,204 256,496 163,425
$ 3,665,533 $ 2,984,629
$ 735,295 $ 439,147 474,553 419,920
$ 1,209,848 $ 859,067
$ 120,000 $ 120,000 3,569 3,423
$ 123,569 $ 123,423
The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.
The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses.
The Company deferred the disposal gain or loss derived from sales of property, plant and equipment to related parties using equity method, and then recognized such gain or loss over the depreciable lives of the disposed assets.
i. Compensation of key management personnel
The compensation to directors and other key management personnel were as follows:
Years Ended December 31
2020
Short-term employee benefits $ 2,567,833 Post-employment benefits 1,951
$ 2,569,784
2019
$ 1,822,806 2,330
$ 1,825,136
The compensation to directors and other key management personnel were determined by the Compensation Committee of the Company in accordance with the individual performance and the market trends.
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