Langston Corporation is being sued by a competitor for $1 million. At the end of the year, company officials believe that there is a 51 percent chance of a loss of $420,000 from this lawsuit. Which of the following statements is true?

A. Under both U.S. GAAP and IFRS, a likability of $420,000 is recognized

B. Under U.S GAAP (but not under IFRS), a liability of $420,000 is recognized

C. Under IFRS (but not under U.S. GAAP), a liability of $420,000 is recognized

D. Under both U.S. GAAP and IFRS, no liability is recognized at this time