Assume that, in a particular year, a reporting entity acquires a patent for a solar-powered toothbrush, but the probability of future economic benefits being generated by the patent is considered to be very low. As a result of changed circumstances in a subsequent year, the outlook is that the potential economic benefits to be generated by the asset are highly likely.

REQUIRED

Explain whether the patent may be recognised as an asset i) when acquired or ii) when the potential economic benefits are assessed as highly likely.