The Federal Government Has Declared a Specific Area a "Natural

The federal government has declared a specific area a "natural disaster" area, making residents of the area eligible for payments from the federal government. When should the liability for such payments be recorded?

A) When an exchange takes place.
B) When the event occurs and the anticipated outflows of resources can be estimated.
C) When anticipated outflows of resources are both probable and measurable.
D) When formally acknowledged and an amount is due and payable as a result.