With regard to reporting of contingent liabilities, U.S. GAAP and International Financial Reporting Standards (IFRS) differ in defining the term "probable". Which of the following is correct with regard to defining "probable"?

Multiple Choice

• Under IFRS, "probable" means the chance of an event occurring is slight.

• Under U.S. GAAP, "probable" means the chance of an event occurring is slight but less than likely.

• Under IFRS, "probable" means an event is more likely than not to occur.

• Under U.S. GAAP, "probable" means an event is more likely than not to occur.