Definitions of elements  LO7,8 Explain how Q Ltd should account for the following items/situations, justifying your answers by reference to the conceptual framework’s definitions and recognition criteria. Required1. Receipt of artwork of sentimental value only. 2. Q Ltd is the guarantor for an employee’s bank loan:

(a) You have no reason to believe the employee will default on the loan.

(b) As the employee is in serious financial difficulties, you think it likely that he will default on the loan. 3. Q Ltd receives 1000 shares in X Ltd, trading at $4 each, as a gift from a grateful client. 4. The panoramic view of the coast from Q Ltd’s café windows, which you are convinced attracts customers to the café. 5. The court has ordered Q Ltd to repair the environmental damage it caused to the local river system. You have no idea how much this repair work will cost.