According to IASB Framework, the two criteria required for incorporating items into the income statement or statement of financial position are that
Choice A – It meets the definition of relevance and faithful representation
Choice B – It meets the definition of an element and can be measured reliably
Choice C – It satisfies criteria of capital maintenance
Choice D – It meets the requirements of comparability and consistency.
Choice "B" is correct because in order for an item to be recognized in the financial statements, IFRS requires that it meet the definition of an element and can be measured reliably