This asset should only be recognised if ๒๒๒๒ can demonstrate that future profits will be sufficient to enable the recoverability of the asset. As
๒๒๒ has been loss-making for several years, it is arguable that this asset should not be recognised at all.
Additionally, an intangible asset relating to development costs of $120 million is recognised. One of the criteria for the
capitalisation of such costs is that adequate resources exist for completion of the development. Given ๒๒๒๒ is lack
of cash, this criteria may no longer be applicable. If adjustments were made to write off these assets, the net liabilities
would become $580 million.