According to the IASB Framework, the two criteria required
for incorporating items into the income statement or statement
of financial position are that

(b) The requirement is to identify the criteria under
IFRS that must be met for an item to be included in financial
statements. Answer (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.