CWBFG Annual Report 2022

INTANGIBLE ASSETS Intangible assets represent identifiable non-monetary assets without physical substance and are acquired either separately through a business combination, or generated internally. Intangible assets with a finite useful life are recorded at cost less any accumulated amortization and impairment losses. Certain intangible assets, such as trademarks and trade names, have an indefinite useful life. These indefinite life intangibles are not amortized but are tested for impairment at least annually. The assets’ useful lives are assessed at least annually.

Amortization of acquisition-related intangible assets with finite useful lives is reported in other expenses and amortization of internally generated software is included in premises and equipment expenses on the consolidated statements of income and recorded on a straight-line basis from the date at which it is available for use as follows:

• Software and related assets: 3 to 15 years • Customer relationships: 10 to 15 years • Non-competition agreements: 4 to 5 years • Other: 3 to 5 years

Software and Related Assets

Trademarks and Tradenames

Non- competition Agreements

Customer Relationships

Other

Total

Cost Balance at November 1, 2021

295,778 52,588 (22,511) 325,855

90,442

8,785

11,084

5,150

411,239 52,588 (22,511) 441,316

$

Additions Disposals

- -

- -

- -

- -

Balance at October 31, 2022

90,442

8,785

11,084

5,150

Accumulated Amortization Balance at November 1, 2021

118,764 46,284 (22,511) 142,537

48,396

-

11,084

5,150

183,394 56,512 (22,511) 217,395

Amortization

8,128

2,100

- -

- -

Disposals

-

-

Balance at October 31, 2022

56,524

2,100

11,084

5,150

Net Carrying Amount at October 31, 2022

$

183,318 $

33,918 $

6,685 $

- $

- $

223,921

Software and Related Assets

Trademarks and Tradenames

Non- competition Agreements

Customer Relationships

Other

Total

Cost Balance at November 1, 2020

$

257,108 $

89,749 $

8,726 $

11,084 $

5,150 $

371,817 39,823

Additions

39,823

-

-

- - -

- - -

Ownership change

-

693

59

752

Disposals

(1,153)

-

-

(1,153)

Balance at October 31, 2021

295,778

90,442

8,785

11,084

5,150

411,239

Accumulated Amortization Balance at November 1, 2020

94,551 25,366 (1,153) 118,764

40,374

- - - -

11,079

5,105

151,109 33,438

Amortization

8,022

5

45

Disposals

-

-

-

(1,153)

Balance at October 31, 2021

48,396

11,084

5,150

183,394

Net Carrying Amount at October 31, 2021

$

177,014 $

42,046 $

8,785 $

- $

- $

227,845

IMPAIRMENT The carrying amounts of our intangible assets with finite useful lives are reviewed at each reporting date to determine whether there is any indication of impairment. If an indication exists, we test for impairment. Goodwill and intangible assets with indefinite useful lives are tested for impairment annually or more frequently if events or changes in circumstances indicate impairment. Impairment testing is performed by comparing an asset’s carrying amount with its recoverable amount. Where it is not possi ble to estimate the recoverable amount of an individual asset, the recoverable amount of the CGU to which the asset belongs will be determined and compared to the carryin g amount of the CGU’s net assets, including attributable goodwill. Goodwill is tested for impairment at the level of a CGU or a group of CGUs. If the recoverable amount is less than the carrying value, an impairment loss is charged to the consolidated statements of income. The recoverable amounts for our CGUs are calculated based on the higher of their value in use and fair value less costs of disposal. Value in use is determined by discounting the future cash flows expected to be generated from the continuing use of the CGU. Fair value less costs of disposal is the amount obtainable from the sale of a CGU in an orderly transaction between market participants, less disposal costs. The fair value of a CGU is estimated using valuation techniques such as a discounted cash flow method or market-based approaches where the fair value of a CGU is determined using comparable market transactions for similar businesses.

In the 2022 and 2021 annual impairment tests, the recoverable amounts of our CGUs are based on their value in use with the exception of the WM CGU, which is based on fair value less costs of disposal.

88 | CWB Financial Group 2022 Annual Report

Powered by