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, 2022
$
101,704 $
19,051 $
53,300 $
52,681 $
113,606 $
340,342
Additions
10,614
60
3,996
2,106
7,842 1,277
24,618
Lease modifications
-
- -
-
-
1,277
Disposals
(2,001)
(7,778)
(3,069)
(2,309)
(15,157)
Balance at October 31, 2023
110,317
19,111
49,518
51,718
120,416
351,080
Accumulated Depreciation and Impairment Balance at November 1, 2022
62,873
8,102
41,124
38,864
36,353 11,633
187,316
Depreciation
5,823
561
3,823
3,017
24,857
Lease modifications
-
- -
-
-
31
31
Disposals
(2,001)
(7,778)
(3,069)
(631)
(13,479)
Balance at October 31, 2023
66,695
8,663
37,169
38,812
47,386
198,725
Net Carrying Amount at October 31, 2023
$
43,622 $
10,448 $
12,349
$
12,906
$
73,030 $
152,355
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
170,875
Depreciation
5,078
574
3,483
2,842
12,359
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
CWB Financial Group 2023 Annual Report | 83
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