TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD | CIK:0001046179 | 3

  • Filed: 4/19/2018
  • Entity registrant name: TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (CIK: 0001046179)
  • Generator: Donnelley Financial Solutions
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    • ifrs-full:DisclosureOfBusinessCombinationsExplanatory

    33. CONSOLIDATION OF SUBSIDIARY

    Due to a Chinese consortium’s acquisition of OVT, major shareholders of VisEra Holding and OVT Taiwan, the Company acquired OVT’s 49.1% ownership in VisEra Holding and 100% ownership in OVT Taiwan on November 20, 2015. The related information is as follows:

     

      a. Subsidiaries acquired

     

        Principal Activity   Date of Acquisition    Proportion of
    Voting Equity
    Interests
    Acquired (%)    		     

    Consideration
    Transferred
    NT$

    (In Millions)

    		  

    VisEra Holding

    		  

    Investing in companies involved in the design, manufacturing and other related businesses in the semiconductor industry

    		   November 20, 2015      49.1      $ 3,536.1  
             

     

     

    		  
             
             
             

    OVT Taiwan

    		   Investment activities   November 20, 2015      100      $ 394.7  
             

     

     

    		  

     

      b. Considerations transferred

     

                                                               
         VisEra Holding        OVT Taiwan    
         NT$      NT$  
         (In Millions)      (In Millions)  

    Cash

    		    $ 3,536.1      $ 394.7  
      

     

     

    		     

     

     

    		  

     

      c. Assets acquired and liabilities assumed at the date of acquisition

     

                                                               
         VisEra Holding        OVT Taiwan    
         NT$      NT$  
         (In Millions)      (In Millions)  

    Current assets

    		      

    Cash and cash equivalents

    		    $ 3,858.5      $ 20.7  

    Accounts receivable

    		      512.0        —  

    Inventories

    		      59.1        —  

    Other financial assets

    		      706.5        373.8  

    Other current assets

    		      26.4        0.2  

    Noncurrent assets

    		      

    Investments accounted for using equity method

    		      721.6        —  

    Property, plant and equipment

    		      2,651.2        —  

    Intangible assets

    		      12.1        —  

    Deferred income tax assets

    		      30.0        —  

    Refundable deposits

    		      15.6        —  
      

     

     

    		     

     

     

    		  
         8,593.0        394.7  
      

     

     

    		     

     

     

    		  
                                                               
         VisEra Holding        OVT Taiwan    
         NT$      NT$  
         (In Millions)      (In Millions)  

    Current liabilities

    		      

    Financial liabilities at fair value through profit or loss

    		    $ 1.0      $ —  

    Accounts payable

    		      87.5        —  

    Salary and bonus payable

    		      183.1        —  

    Accrued profit sharing bonus to employees and compensation to directors and supervisors

    		      45.8        —  

    Payables to contractors and equipment suppliers

    		      132.3        —  

    Income tax payable

    		      47.9        —  

    Provisions

    		      126.0        —  

    Accrued expenses and other current liabilities

    		      102.8        —  

    Noncurrent liabilities

    		      

    Guarantee deposits

    		      1.3        —  
      

     

     

    		     

     

     

    		  
              727.7         —  
      

     

     

    		     

     

     

    		  

    Net assets

    		    $ 7,865.3      $     394.7   
      

     

     

    		     

     

     

    		  
      d. Goodwill arising on acquisition

     

                                                               
         VisEra Holding         
         NT$         
         (In Millions)         

    Consideration transferred

    		    $ 3,536.1     

    Fair value of investments previously owned

    		      3,458.2     

    Less: Fair value of identifiable net assets acquired

    		      (7,865.3 )    

    Non-controlling interests

    		           923.7      
      

     

     

    		     

    Goodwill arising on acquisition

    		    $ 52.7     
      

     

     

    		     

     

      e. Net cash outflow on acquisition of subsidiaries

     

                                                               
         VisEra Holding        OVT Taiwan    
         NT$      NT$  
         (In Millions)      (In Millions)  

    Consideration paid in cash

    		    $ 3,536.1      $ 394.7  

    Less: Cash and cash equivalent balances acquired

    		      (3,858.5 )       (20.7 ) 
      

     

     

    		     

     

     

    		  
       $ (322.4 )     $     374.0   
      

     

     

    		     

     

     

    		  

     

      f. Impact of acquisitions on the results of the Company

    The results of VisEra Holding since the acquisition date included in the consolidated statements of profit or loss and other comprehensive income for the year ended December 31, 2015 were as follows:

     

                                                               
         VisEra Holding         
         NT$         
         (In Millions)                              

    Net revenue

    		    $      254.3      
      

     

     

    		     

    Net income

    		    $ 13.9     
      

     

     

    		     

     

    Had the business combination of VisEra Holding been in effect on January 1, 2015, the Company’s net revenue and net income for the year ended December 31, 2015 would have been NT$846,401.8 million and NT$302,964.4 million, respectively. This pro-forma information is for illustrative purposes only and is not necessarily an indication of revenue and results of operations of the Company that actually would have been achieved had the acquisition been completed on January 1, 2015, nor is it intended to be a projection of future results. The aforementioned pro-forma net revenue and net income were calculated based on the fair value of assets acquired and liabilities assumed at the date of acquisition.