A: Not according to the definition of Standard 30, according to the framework of the concepts it is not a financial asset. Because there is no expectation of getting money back. It's not a customer debt. It's not a loan. It's a non-monetary item.
Q: Okay. You can also confirm to me that the special payments are physically immaterial.
A: Yes. You can't touch it. "
- With regard to the definition of an asset and the prerequisites for its recognition, the conceptual framework states that "a throne is a resource controlled by the entity as a result of past events from which future economic benefits are expected to flow to the entity." (the conceptual framework, in section 4.4(a)).
An entity has control over an economic resource if it has " the power to obtain the future economic benefits flowing from the underlying resource and to restrict others' access to those benefits." (Section 13 of Regulation 30). Control usually derives from the ability to exercise legal rights. However, control can also arise from other rights that allow the entity to obtain the economic benefits and deny them to others, for example, unique knowledge that is kept confidential but not protected by a patent (trade secret). In other words, contrary to what is claimed in the defendant's affidavits (affidavit of CPA Gottlieb, paras. 129, 174 and 177; Eden Opinion 2025, paragraphs 5.9-5.10 and 7.4b), the starting point for the examination is not the question of the timing of the recognition of the income, but rather the very existence of a controlled resource with the potential for future benefits.
- Beyond the general definition of the term "asset" in the conceptual framework, Standard 30, which is essentially equivalent to the international IAS 38, sharpens the definition of the asset in relation to the conceptual framework and establishes three cumulative conditions for the recognition of an intangible asset:
(1) Identification - the existence of a separately identifiable resource (Sections 11-12 of Standard 30);