1.12 Definitions and recognition criteria * L07, 8 Explain how Simpkins Ltd should account for the following items, justifying your answers by reference to the definitions and recognition criteria in the Conceptual Framework. Also state, where appropriate, which ledger accounts should be debited and credited. 1. Photographs of the company's founders, which are of great sentimental and historical value. 2. (a) Simpkins Ltd has been sued for negligence -- likely it will lose the case. (b) Simpkins Ltd has been sued for negligence -- likely it will win the case. 3. Obsolete machinery now retired from use. 4. Simpkins Ltd receives a donation of $5000