9. PROPERTY AND EQUIPMENT Land is carried at cost. Buildings, equipment and furniture, and leasehold improvements are carried at cost less accumulated depreciation and impairment. Right-of-use assets reflect leases of primarily branches and office premises, and are measured at an amount equal to the lease liability adjusted by any prepaid or accrued lease payments. Lease liabilities are measured at the present value of the remaining lease payments discounted at our weighted average incremental borrowing rate.
Depreciation is calculated primarily using the straight-line method over the estimated useful life of the asset, as follows:
• Buildings: 20 years • Computer and office equipment and furniture: 3 to 10 years • Leasehold improvements: over the shorter of the term of the lease and the remaining useful life • Right-of-use assets: over the earlier of the lease term and the expected life. If ownership will transfer to us or we are reasonably certain to exercise a purchase option at the end of the lease term, the expected life of the right-of-use asset is used. When components of an item of property and equipment have different useful lives, they are accounted for as separate items. Gains and losses on disposal are recorded in non-interest income in the period of disposal. Property and equipment is subject to an impairment review if there are events or changes in circumstances which indicate that the carrying amount may not be recoverable.
Leasehold Improvements
Land and Buildings
Computer Equipment
Office Equipment
Right of Use Asset
Total
Cost Balance at November 1, 2020
$
86,005 $
18,955 $
47,921 $
49,103 $
86,388 $
288,372
Additions
6,106
61
2,211
3,180
2,973 2,129
14,531
Lease modifications
-
- -
-
-
2,129
Disposals
(1,974)
(155)
(1,009)
(321)
(3,459)
Balance at October 31, 2021
90,137
19,016
49,977
51,274
91,169
301,573
Accumulated Depreciation and Impairment Balance at November 1, 2020
59,185
6,952
33,255
37,673
11,958 11,905
149,023
Depreciation
4,970
576
4,574
2,834
24,859
Lease modifications
-
- -
-
-
452
452
Disposals
(1,974)
(155)
(1,009)
(321)
(3,459)
Balance at October 31, 2021
62,181
7,528
37,674
39,498
23,994
170,875
Net Carrying Amount at October 31, 2021
$
27,956 $
11,488 $
12,303
$
11,776
$
67,175 $
130,698
Cost Balance at November 1, 2019
$
80,782 $
18,653 $
42,197 $
49,152 $
- $
190,784
Adoption of IFRS 16 on November 1, 2019
-
- -
-
-
79,874
79,874
(Note 3)
Acquisition
884
32
114
4,673 5,955
5,703
Additions
6,376
302
5,812
1,128
19,573
Lease modifications
-
- -
-
-
(3,767)
(3,767) (3,795)
Disposals
(2,037)
(120)
(1,291)
(347)
Balance at October 31, 2020
86,005
18,955
47,921
49,103
86,388
288,372
Accumulated Depreciation and Impairment Balance at November 1, 2019
55,713
6,386
29,462
36,057
-
127,618
Depreciation
5,485
566
3,883
2,907
12,305
25,146
Disposals
(2,013)
-
(90)
(1,291)
(347)
(3,741)
Balance at October 31, 2020
59,185
6,952
33,255
37,673
11,958
149,023
Net Carrying Amount at October 31, 2020
$
26,820 $
12,003 $
14,666 $
11,430 $
74,430 $
139,349
88 | CWB Financial Group 2021 Annual Report
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