TD Bank 2009 Annual Report Download - page 118

TD BANK FINANCIAL GROUP ANNUAL REPORT 2009 FINANCIAL RESULTS114
Buildings, equipment, furniture and fixtures, computer equipment
and software, and leasehold improvements are recorded at cost less
accumulated depreciation. Land is recorded at cost. Gains and losses
on disposal are included in other income in the Consolidated Statement
of Income. When land, buildings and equipment are no longer in use
or considered impaired, they are written down to their net recoverable
amount. The Bank evaluates the carrying value of long-lived assets
whenever changes in circumstances indicate that a potential impairment
has occurred. Impairment is considered to have occurred if the projected
undiscounted cash flows resulting from the use and eventual disposition
of the assets are less than their carrying value, at which time a write-
down would be recorded.
The Bank records the obligation associated with the retirement of
a long-lived asset at fair value in the period in which it is incurred and
can be reasonably estimated, and records a corresponding increase
to the carrying amount of the asset. The asset is depreciated over its
remaining useful life while the liability is accreted to reflect the passage
of time until the eventual settlement of the obligation.
Depreciation methods and rates by asset category are as follows:
Asset Depreciation rate and method
Buildings 5% or 10%, declining balance
Computer equipment 3 to 7 years, straight-line
Computer software 3 to 7 years, straight-line
Furniture and fixtures 20%, declining balance
Other equipment 5 to 8 years, straight-line
Leasehold improvements lesser of lease term plus one renewal
or useful life, straight-line
LAND, BUILDINGS AND EQUIPMENT
NOTE 10
Demand deposits are those for which the Bank does not have the right
to require notice prior to withdrawal. These deposits are in general
chequing accounts.
Notice deposits are those for which the Bank can legally require notice
prior to withdrawal. These deposits are in general savings accounts.
Term deposits are those payable on a fixed date of maturity purchased
by customers to earn interest over a fixed period. The terms are from
one day to 10 years. Accrued interest on deposits, calculated using the
effective interest rate method, is included in other liabilities on the
Consolidated Balance Sheet. The deposits are generally term deposits,
guaranteed investment certificates and similar instruments. The aggre-
gate amount of term deposits in denominations of $100,000 or more
as at October 31, 2009 was $98 billion (2008 – $123 billion). Certain
deposit liabilities are classified as trading and accounted for at fair value
with the change in fair value recognized in the Consolidated Statement
of Income.
DEPOSITS
NOTE 12
OTHER ASSETS
NOTE 11
Net Book Value
(millions of Canadian dollars) 2009 2008
Accumulated Net book Net book
Cost depreciation value value
Land $ 804 $ – $ 804 $ 731
Buildings 1,766 468 1,298 1,091
Computer equipment and software 1,163 661 502 557
Furniture, fixtures and other equipment 1,207 373 834 854
Leasehold improvements 1,181 541 640 600
Total $ 6,121 $ 2,043 $ 4,078 $ 3,833
(millions of Canadian dollars) 2009 2008
Amounts receivable from brokers, dealers and clients $ 6,136 $ 6,302
Accounts receivable, prepaid expenses and other items 4,587 4,352
Prepaid pension expense 1,156 637
Insurance-related assets, excluding investments 1,110 971
Accrued interest 1,081 2,081
Current income taxes receivable 238 1,941
Net future income tax asset –1,247
Total $ 14,308 $ 17,531
Accumulated depreciation at the end of 2008 was $2,445 million.
Depreciation expense for buildings and equipment amounted to
$600 million for 2009 (2008 – $438 million; 2007 – $362 million).