Page 253 - TSMC 2022 Annual Report

December 31, 2021 Level 1 Level 2 Level 3
$ - $ 159,048 $ -
$ - $ 57,253,161 $ -
- 32,070,114 - 21,267,002 78,792 - - 8,660,424 -
- - 5,887,892 189,758 - - - 4,199,909 -
$ 21,456,760 $ 102,262,400 $ 5,887,892
$ - $ 13,468 $ -
$ - $ 681,914 $ -
$ 9,642 $ - $ - Reconciliation of Level 3 fair value measurements of financial assets
Total
159,048
57,253,161
32,070,114 21,345,794 8,660,424
5,887,892 189,758 4,199,909
129,607,052
13,468
681,914
9,642
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
Cash flow hedges
Forward interest rate contracts
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts
Hedging financial liabilities
$
$
$
$
$
$
Fair value hedges
Interest rate futures contracts
The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI and financial assets at FVTPL. Reconciliations for the years ended December 31, 2022 and 2021 are as follows:
Balance, beginning of year
Additions
Recognized in other comprehensive income or loss Disposals and proceeds from return of capital of investments Transfers out of level 3 (Note)
Effect of exchange rate changes
Balance, end of year
$
$
2022
5,887,892 715,612
(373,263) (359,506) (139,770) 551,087
6,282,052
$
$
2021
4,514,940 319,177 1,821,762
(700,224) -
(67,763) 5,887,892
Years Ended December 31
Note: The transfer from level 3 to level 1 is because quoted prices (unadjusted) in active markets data became available for the equity investments.
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