The following events occurred in relation to assets and liabilities recognised by Watson Ltd.

(a) Watson Ltd settled (paid) an account payable.

(b) Watson Ltd sold an item of inventory to a customer.

(c) Watson Ltd had been using the fair value measurement base for its plant but estimates of fair value have become unreliable due to changes in market conditions.

(d) A debtor, Holmes Pty Ltd, is facing financial difficulties and has advised that it might be unable to pay the amount owing to Watson Ltd.
Required For each event, state whether it would be likely to result in derecognition of an asset or liability in accordance with the Conceptual Framework. Give reasons for your answer.