Page 362 - TSMC 2022 Annual Report

Marketing expenses - commission
TSMC Europe Other subsidiaries
2022
$ 541,200 618,880
$ 1,160,080
2021
$ 465,783 517,205
$ 982,988 (Concluded)
Years Ended December 31
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.
k. Compensation of key management personnel
The compensation to directors and other key management personnel were as follows:
Short-term employee benefits Post-employment benefits Share-based payments
2022
$ 4,221,962 2,618 286,227
$ 4,510,807
2021
$ 2,768,725 2,458 -
$ 2,771,183
Years Ended December 31
The compensation to directors and other key management personnel were determined by the Compensation Committee (rename to Compensation and People Development Committee from February 14, 2023) of the Company in accordance with the individual performance and the market trends.
32. SIGNIFICANTCONTINGENTLIABILITIESANDUNRECOGNIZEDCOMMITMENTS
Significant contingent liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows:
a. Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C.
Government or its designee approved by the Company can use up to 35% of the Company’s capacity provided the Company’s outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one year prior notice. As of the end of reporting period, the R.O.C. Government did not invoke such right.
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