Asset recognition requires which conditions?

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Asset recognition rests on two conditions: it must be probable that future economic benefits will flow to or from the entity, and the asset’s cost or value must be measurable reliably. When both are satisfied, the asset can be recognized in the books. This is why the statement that matches both ideas is correct: benefits are likely, and the measurement of cost or value is reliable. If future benefits are likely but you can’t measure the cost reliably, you can’t recognize the asset. If the cost can be measured reliably but the benefits aren’t probable, you also can’t recognize it. Market value at recognition isn’t required, and an asset doesn’t have to be physically present to be recognized—the key is that the benefits are probable and the measurement is reliable.