Highope Ltd is currently exploring for platinum (a precious mineral) in central Australia. The company has acquired a mining licence from the Australian Government, which allows it to explore for platinum in a specific region of central Australia. Based on the licence, Highope Ltd has the right to sell any platinum it finds in this region. To date, Highope Ltd has spent $300,000 cash in exploration costs searching for platinum. Highope Ltd has no previous experience in mining, has not found any platinum as yet, and no platinum has been found at nearby mining sites.

1a) Should Highope Ltd recognise an asset in relation to the exploration costs? Justify in accordance with the relevant Conceptual Framework definition and recognition criteria.

1b) Should Highope Ltd recognise an expense in relation to the exploration costs? Justify in accordance with the relevant Conceptual Framework definition and recognition