Page 354 - TSMC 2022 Annual Report

The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on the probability of default and loss given default provided by external credit rating agencies. The current credit risk assessment policies are as follows:
Category
Performing Doubtful In default Write-off
Description
Credit rating is investment grade on valuation date
Credit rating is non-investment grade on valuation date
Credit rating is CC or below on valuation date
There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery
Basis for Recognizing Expected Credit Loss
12 months expected credit loss
Lifetime expected credit loss-not credit impaired
Lifetime expected credit loss-credit impaired
Amount is written off
Expected Credit Loss Ratio
0-0.09% -
-
-
For the years ended December 31, 2022, the expected credit loss increased NT$10,341 thousand. The changes were mainly due to increased investment amount and adjusted investment portfolio.
e. Liquidity risk management
The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its business operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalents and sufficient cost-efficient funding.
The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments, including principal and interest.
December 31, 2022
Non-derivative financial liabilities
Accounts payable (including related parties)
Payables to contractors and equipment suppliers
Accrued expenses and other current liabilities
Bonds payable
Lease liabilities (including those
classified under accrued expenses and other current liabilities) (Note)
$
Less Than 1 Year
58,783,586
200,046,018
202,361,596 22,247,420
2,356,314
$
1-3 Years
39,372,048
4,358,739 166,266,719 209,997,506
More Than 3-5 Years 5 Years
$ - $ - - -
- - 160,243,071 228,241,509
4,163,558 21,795,680 10,518,481 783,181 174,925,110 250,820,370
- - - - - -
$ 174,925,110 $ 250,820,370
Total
58,783,586 200,046,018
202,361,596 450,104,048
32,674,291 177,568,381 1,121,537,920
74,107,091 (74,837,641) (730,550)
$ 1,120,807,370 (Continued)
Others - 485,794,934
Derivative financial instruments
- - -
$
Forward exchange contracts
Outflows 74,107,091 - Inflows (74,837,641) -
(730,550) - $ 485,064,384 $ 209,997,506
- 168 -
- 168 -