RIGHT OF USE ASSETS AND LEASE LIABILITIES

3 Months Ended

Jan. 31, 2022

Right Of Use Assets And Lease Liabilities

RIGHT OF USE ASSETS AND LEASE LIABILITIES

NOTE 2. RIGHT OF USE ASSETS AND LEASE LIABILITIES

During the quarter ended April 30, 2019, the Company implemented Accounting Standards Update 2016-02, Leases. Under the new guidance, a lessee must be recorded a liability for lease payments (referred to as the lease liability) and an asset for the right to use the leased asset during the lease term (referred to at the right of use asset) for all leases, regardless of whether they are designated as finance or operating leases. This election requires the lessee to recognize lease expense on a straight-line basis over the lease term. The right of use assets and corresponding right of use liabilities have been recorded using the present value of the leases. See Notes 11 and 12 within the condensed financial statements for additional disclosure on leases.