Page 245 - TSMC 2022 Annual Report

c. Employee benefits expenses
Post-employment benefits Defined contribution plans Defined benefit plans
Share-based payments Equity-settled Cash-settled
Other employee benefits
Employee benefits expense summarized by function Recognized in cost of revenue
Recognized in operating expenses
$
$
$
$
2022
4,550,387 208,641 4,759,028
302,348 32,704 335,052
234,367,880 239,461,960
139,361,369 100,100,591
239,461,960
$
2021
3,711,010 192,485 3,903,495
7,788 - 7,788
Years Ended December 31
161,035,865 $ 164,947,148
$ 98,012,833 66,934,315
$ 164,947,148
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 2022 2021
Profit sharing bonus to employees $ 60,702,047 $ 35,601,449
TSMC’s profit sharing bonus to employees and compensation to directors for 2022, 2021 and 2020 had been approved by the Board of Directors of TSMC, as illustrated below:
Resolution Date of TSMC’s Board of
Directors in its meeting
Profit sharing bonus to employees Compensation to directors
2022 2021 February 14, February 15, 2023 2022
$ 60,702,047 $ 35,601,449 $ 690,128 $ 487,537
2020 February 9, 2021
$ 34,753,184 $ 509,753
Years Ended December 31
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