8. 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 primarily reflect leases of 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, 2021
$
90,137 $
19,016 $
49,977 $
51,274 $
91,169 $
301,573
Additions
15,953
35
3,356
4,883
17,153
41,380
Lease modifications
-
- -
-
-
5,284
5,284
Disposals
(4,386)
(33)
(3,476)
-
(7,895)
Balance at October 31, 2022
101,704
19,051
53,300
52,681
113,606
340,342
Accumulated Depreciation and Impairment Balance at November 1, 2021
62,181
7,528
37,674
39,498
23,994 12,359
170,875
Depreciation
5,078
574
3,483
2,842
24,336
Lease modifications
-
- -
-
-
-
-
Disposals
(4,386)
(33)
(3,476)
-
(7,895)
Balance at October 31, 2022
62,873
8,102
41,124
38,864
36,353
187,316
Net Carrying Amount at October 31, 2022
$
38,831 $
10,949 $
12,176
$
13,817
$
77,253 $
153,026
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
86 | CWB Financial Group 2022 Annual Report
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