3. CASH RESOURCES
Cash resources include highly liquid investments that are readily convertible to cash and are subject to an insignificant risk of change in value. Cheques and other items in transit included in cash resources are recorded at amortized cost.
Interest bearing deposits with financial institutions included in cash resources are classified and measured at FVOCI as the requirements of the SPPI test are satisfied and the deposits are managed under a ‘hold to collect and sell’ busine ss model. Changes in fair value are reported in other comprehensive income, net of tax.
At October 31, 2022, $27,378 (October 31, 2021 – $25,078) of cash was restricted from use in relation to the securitization of equipment financing leases and loans.
4. SECURITIES Debt securities, which are measured at FVOCI, have contractual cash flows that satisfy the requirements of the SPPI test and are purchased with the objective of collecting contractual cash flows and selling the assets in response to, or in anticipation of, changes in interest rate, credit or foreign currency risk, funding sources, terms or to meet liquidity requirements. Debt securities measured at FVOCI are initially recorded at fair value, net of transaction costs. They are subsequently measured at fair value, with unrealized gains and losses recorded in OCI, net of tax, until the security is sold. Gains and losses realized upon sale of the securities are recorded in gains (losses) on securities, net in the consolidated statements of income. Interest income earned is recorded using the effective interest method.
Equity securities are equity instruments held for long-term investment purposes. We have made the election to measure equity securities at FVOCI. Unrealized gains and losses are recorded in OCI, net of tax, and are subsequently transferred directly to retained earnings.
The analysis of securities at carrying value, by type and maturity or reprice date, follows:
Maturity/Reprice
3 to 5 Years
Greater than 5 Years
As at October 31 2022
As at October 31 2021
Within 1 Year
1 to 3 Years
No Specific Maturity
Measured at FVOCI Interest bearing deposits with financial institutions (1)
$
26,833 $
- $
- $
- $
- $
26,833 $
21,344
Debt securities issued or guaranteed by Canada
1,805,669
1,828,140
271,535
5,477
- - -
3,910,821
2,962,290
A province or municipality
246,245 25,055
202,702 123,667
- -
- -
448,947 148,722
406,708 198,799
Other debt securities issued by United States Treasury
Designated at FVOCI Other equity securities
-
-
-
-
10,305
10,305
6,081
Total
$ 2,103,802 $
2,154,509 $
271,535 $
5,477 $
10,305 $ 4,545,628 $ 3,595,222
(1) Included in cash resources on the consolidated balance sheets.
76 | CWB Financial Group 2022 Annual Report
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