On April 1, 20X1, a Local Government Grants Victoria Transit

On April 1, 20X1, a local government grants Victoria Transit Entity (VTE) a shuttle license, free of charge. The terms of the license grant require VTE to operate a shuttle between three cities for a period of six years. Which of the following is true?
I. Under IAS 20, no record is necessary.
II. The fair value of the license should be recognized as an asset.
III. The government grant should be recognized as an asset.
IV. The transaction may be recorded at nominal value.

A) I
B) II, IV
C) II, III
D) III, IV
E) II, III, IV