The auditor of Beastie Company is reviewing the following client information for the prior year ended December 31, 2015, and all four quarters of 2016.

ESTIMATED ACCRUALS IN PRETAX EARNINGS (IN MILLIONS)

1. 12/31/15

2. Quarter ended 3/31/16

3. Quarter ended 6/30/16

4. Quarter ended 9/30/16

5. Quarter ended 12/31/16

6. Totals

Accruals relating to employeevacation pay

1. (2.0)

2. (0.4)

3. (0.5)

4. (0.6)

5. (0.6)

6. (4.1)

Accruals for charitable contributions

1. (0.6)

2. (0.1)

3. (0.2)

4. (0.2)

5.(0.3)

6. (1,4)

1. Characterize the accruals above as discretionary or nondiscretionary, andexplain why. How should an auditor address these accruals?