CWBFG Annual Report 2023

9. GOODWILL AND INTANGIBLE ASSETS GOODWILL

Goodwill arises on the acquisition of subsidiaries and represents the excess of the fair value of the purchase consideration, including any amount of any non-controlling interest in the acquiree, over the net recognized amounts of the identifiable assets, including identifiable intangible assets, and liabilities assumed. For the purposes of calculating goodwill, fair values of acquired assets and liabilities are determined by reference to market values or by discounting expected future cash flows to present value.

This discounting is performed using either market rates, or risk-free rates with risk-adjusted expected future cash flows.

Goodwill is stated at cost less impairment losses. Goodwill is allocated to cash-generating units (CGU) for the purpose of impairment testing considering the business level at which goodwill is monitored for internal management purposes. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. On this basis, CWB’s CGUs with goodwill allocated are:

• Wealth Management (WM); • CWB Maxium Financial Inc. (MX); and, • CWB National Leasing Inc. (NL).

WM

MX

NL

Total

Balance at October 31, 2023

$

64,056 $

38,869 $

35,776 $

138,701

WM

MX

NL

Total

Balance at October 31, 2022

$

64,056 $

38,869 $

35,776 $

138,701

84 | CWB Financial Group 2023 Annual Report

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