Wagon Coffee Limited is a small company involved in selling artisanal coffee at beauty spots in Devon and Cornwall. The company has a number of converted VW camper vans that are equipped to serve large volumes of cappuccinos, lattes and flat whites. On 2 January 20X8, the directors were informed that the company had been successful in its application for a permit to position some camper vans and sell coffee at beaches in Falmouth. The cost of the permit is 15 000. No other coffee company is able to obtain this permit for the Falmouth beaches, as only one is issuable by the Cornwall County Council at any one time. The permit is valid for a period of three years, following which it will be up to the County Council to decide who will be able to purchase the next such permit. Wagon Coffee Limited intends to apply for the permit renewed for the next three years after its expiry. It is not yet certain or probable that the company would be successful in such a bid. The board of directors of Wagon Coffee Limited are debating whether the cost of the permit should be capitalised or expensed. Required: Discuss the recognition and measurement of the permit in the financial statements of Wagon Coffee Limited for the year ended 31 December 20X8, with reference to the International Financial Reporting Standards. (15 marks)