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</LabelSeparator><Level>2</Level><ElementName>us-gaap_BasisOfPresentationAndSignificantAccountingPoliciesTextBlock</ElementName><ElementPrefix>us-gaap_</ElementPrefix><IsBaseElement>true</IsBaseElement><BalanceType>na</BalanceType><PeriodType>duration</PeriodType><IsReportTitle>false</IsReportTitle><IsSegmentTitle>false</IsSegmentTitle><IsCalendarTitle>false</IsCalendarTitle><IsEquityPrevioslyReportedAsRow>false</IsEquityPrevioslyReportedAsRow><IsEquityAdjustmentRow>false</IsEquityAdjustmentRow><IsBeginningBalance>false</IsBeginningBalance><IsEndingBalance>false</IsEndingBalance><IsReverseSign>false</IsReverseSign><PreferredLabelRole>verboseLabel</PreferredLabelRole><FootnoteIndexer /><Cells><Cell FlagID="0" ContextID="P01_01_2013To06_30_2013" UnitID=""><Id>1</Id><IsNumeric>false</IsNumeric><IsRatio>false</IsRatio><DisplayZeroAsNone>false</DisplayZeroAsNone><NumericAmount>0</NumericAmount><RoundedNumericAmount>0</RoundedNumericAmount><NonNumbericText>              &lt;div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "&gt;  &lt;font style="COLOR: black"&gt;&lt;/font&gt;     &lt;div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt; FONT-SIZE: 10pt"&gt;  &lt;font style="COLOR: black"&gt;&lt;strong&gt;Note 2. Basis of  Presentation&lt;/strong&gt;&lt;/font&gt;&lt;/div&gt;    &lt;div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &lt;font style="COLOR: black"&gt;&amp;#160;&lt;/font&gt;&lt;/div&gt;    &lt;div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 22.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"&gt;  &lt;font style="COLOR: black"&gt;The accompanying unaudited interim  condensed consolidated financial statements of TranSwitch have been  prepared pursuant to the rules &lt;font style="COLOR: black"&gt;and  regulations of the Securities and Exchange Commission (SEC) for  reporting on Form 10-Q. Accordingly, certain information and notes  required by accounting principles generally accepted in the United  States of America for complete financial statements are not  included herein. These condensed consolidated financial statements  are prepared on a consistent basis with, and should be read in  conjunction with, the audited consolidated financial statements and  the related notes thereto as of and for the year ended December 31,  2012, contained in the Company&amp;#8217;s Annual Report on Form 10-K  for the year ended December 31, 2012, as filed with the Securities  and Exchange Commission on March 25, 2013. In the opinion of  management, the accompanying unaudited interim condensed  consolidated financial statements include all adjustments,  consisting of normal recurring adjustments that are necessary for a  fair presentation. The results of operations for any interim period  are not necessarily indicative of the results that may be achieved  for the full year.&lt;/font&gt;&amp;#160;&lt;/font&gt;&lt;/div&gt;  &lt;/div&gt;        </NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS).  Accounting policies describe all significant accounting policies of the reporting entity.</ElementDefenition><ElementReferences>No definition available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Basis of Presentation and Significant Accounting Policies [Text Block]</Label></Row></Rows><Footnotes /><IsEquityReport>false</IsEquityReport><ReportName>Basis of Presentation</ReportName><MonetaryRoundingLevel>UnKnown</MonetaryRoundingLevel><SharesRoundingLevel>UnKnown</SharesRoundingLevel><PerShareRoundingLevel>UnKnown</PerShareRoundingLevel><ExchangeRateRoundingLevel>UnKnown</ExchangeRateRoundingLevel><HasCustomUnits>true</HasCustomUnits><IsEmbedReport>false</IsEmbedReport><IsMultiCurrency>false</IsMultiCurrency><ReportType>Sheet</ReportType><RoleURI>http://www.transwitch.com/role/BasisOfPresentation</RoleURI><NumberOfCols>1</NumberOfCols><NumberOfRows>2</NumberOfRows></InstanceReport>
