A company is involved in a lawsuit where it is probable that it will have to pay a fine. The company does not dispute the facts, only the amount it should be required to pay. At year-end, the attorneys involved in the case estimate that the fine will be somewhere between €1,000,000 and €3,000,000, with each amount in the range equally likely. Which of the following statements is correct?

a. Under both IFRS and GAAP, the maximum of the range (€3,000,000) should be reported.

b. Under both IFRS and GAAP, the minimum of the range (€1,000,000) should be reported.

c. Under both IFRS and GAAP, the midpoint of the range (€2,000,000) should be reported.

d. Under IFRS, the midpoint of the range (€2,000,000) should be reported. Under GAAP, the minimum of the range (€1,000,000) should be reported.