ASSOCIATION OF ALBERTA MUNICIPALITIES

Notes to the Consolidated Financial Statements

Year ended December 31, 2022

5. Investment in and advances to AEOEPC (continued):

6. Other assets:

As manager of the AMP property, ABmunis entered into lease agreements with tenants of this property. These agreements required ABmunis to fund tenant improvements and to pay leasing commissions to the leasing agents involved in arranging the agreements. In addition, there is deferred rent associated with the “step-up” features of the lease agreements signed with tenants.

For the year ended December 31, 2022, amortization of $38,832 (2021 - $68,746) related to tenant improvements and leasing commissions was included in rental properties expense.

7. Software service assets:

For the year ended December 31, 2022, amortization of $163,679 related to software service assets was included in Systems and equipment maintenance (2021 - $nil).