Professional Documents
Culture Documents
Easy Questions No. 1
Easy Questions No. 1
1
Under a royalty agreement with another company, W and Co. will pay
royalties for the assignment of a patent for three years. When should the
company recognize the royalty payment as an expense?
A In the period paid.
.
B In the period incurred.
.
C At the date the royalty agreement began.
.
D At the date the royalty agreement expired.
.
How much is the total realized gross profit for calendar year 2015?
Answer: P3,044,250
From 2015 [(8,765,625/68%)- P1,012,000
9,728,125]*32%
From 2014 (8,387,500-3,025,000)*30% 1,608,750
From 2013 (1,512,500*28%) 423,500
Total P3,044,250
Assuming that the Company’s selling price is 140% of inventory cost, the
adjusted cost of Arrow Company’s inventory at December 31, 2015 should
be:
ANSWER: Php1,037,500
a) Seventy percent of the planned audit work has been completed with no
significant adverse observations.
b) The auditors have decided to substitute survey procedures for some of the
planned detailed review of certain records.
c) The engagement program has been expanded because of indications of
possible fraud.
d) Open burning at a subsidiary plant poses a prospective violation of pollution
regulations.
Solution: D
a) Incorrect. There is no need for earlier consideration in this situation.
b) Incorrect. Changes in auditor methodology are not of particular importance to
the engagement client.
c) Incorrect. Indications of possible fraud would not be communicated to the
engagement client.
d) Correct. Such a situation would require immediate attention.
Answer: C
The short-cut breakeven point formula is calculated as follows:
How much would be the depletion for 2014 for financial reporting
purposes?
ANSWER: P-0-
Since the two quarries are merely leased and the Company pays a
Php0.05 royalty for every ton of marble quarried, Minecraft will not
recognize the quarries as assets in its books and will record only
royalty expense for leasing them. Hence, there is no depletion
expense.
2014 2015
Cost incurred during the year P3,000,000 P15,750,000
Estimated costs to complete, as of December 12,000,000 -0-
31
Billing during the year 3,600,000 15,400,000
Collections during the year 2,500,000 15,500,000
The portion of the total contract price to be recognized as revenue in 2014 is
Answer: P4,000,000
Cost incurred during the year P3,000,000
Total estimated costs 15,000,000
(3,000,000+12,000,000)
Percentage of completion 20%
Contract price 20,000,000
Revenue in 2014 P4,000,000
Average Question No. 1
1. The manager of a production line has the authority to order and receive
replacement parts for all machinery that require periodic maintenance. The
internal auditor received an anonymous tip that the manager ordered
substantially more parts than were necessary from a family member in the parts
supply business. The unneeded parts were never delivered. Instead, the
manager processed receiving documents and charged the parts to machinery
maintenance accounts. The payments for the undelivered parts were sent to the
supplier, and the money was divided between the manager and the family
member.
Which of the following tests would best assist the auditor in deciding
whether to investigate this anonymous tip further?
a) Comparison of the current quarter’s maintenance expense with prior-period
activity.
b) Physical inventory testing of replacement parts for existence and valuation.
c) Analysis of repair parts charged to maintenance to review the reasonableness
of the number of items replaced.
d) Review of a test sample of parts invoices for proper authorization and receipt.
Solution: C
a) Incorrect. The current quarter’s expense would equal the prior period’s
activity unless the manager just started this fraud. The auditor has no
information on how long this might have been occurring.
b) Incorrect. Physical testing would not locate nonexistent parts that have
already been charged to maintenance.
c) Correct. An analysis of repair parts charged to maintenance would
quantify the excessive number of items and detect that abuse may
be occurring.
d) Incorrect. Lack of segregation of duties allowed the fraud to occur. The
manager was authorized to process both the purchase and receipt, so the
test would only verify the fraudulent paperwork.
In 2015, the company estimates that the selling price will be P9.50 per
piece, variable cost to manufacture will increase by 25%, and fixed costs
will increase by 20%. Income tax rate of 35% will not change.
How many units of handbags does McGraw Company must see in 2015 in
order to maintain the same net income after tax as in 2014?
CURREN
LAST YEAR T YEAR
Contribution P189,00
Margin P159,000 0 Squeezed
Fixed cost (150,000) (180,000)[P150,000 *120%]
Net income
before tax
[(NI after tax /
35%)] 9,000 9,000
Income tax [35%
NI before tax] (3,150) (3,150)
Net income after
tax P5,850 P5,850
Contribution P189,0
margin 00
New CM Rate P7
[(P9.5 - (P2 *
125%))]
Sales to meet last 27,000
year's net income units
Keith Urban’s income shown does not include any dividend income from Mimi.
Keith Urban’s accumulated profits balance at the date of acquisition was P
5,958,500. Assume that Mimi has outstanding 6% P 100 par value cumulative
preference shares with an aggregate value of P 1,000,000 that are classified
as equity and are held by non-controlling interests. What is the income
attributable to parent on December 31, 2014?
Answer: P1,744,700
a. P21,750
b. P10,500
c. P32,000
d. P18,000
ANSWER: D
SOLUTION:
Input tax on sale subject to 12% P5,000
Input tax on zero-rated sale 3,000
Ratable portion of the input tax not
directly attributable to any activity:
Answer: C
PAS 38, Intangible Assets paragraph 63 states that internally generated
brands, mastheads, publishing titles, customer lists and items similar in
substance shall not be recognized as intangible assets.
ANSWER: C
Solution:
(12,000,000 x 6%) x (2,000,000/10,000,000) = P144,000
Answer: D
ANSWER: C
Solution:
On double {[(200÷10)x100] – 200} x 4% P 72
On winner take all {[(500÷50)x700] – 500} x 10% 650
On forecast {[(1,000÷50)x150] – 1,000} x 4% 80
Total percentage tax due P 802
Solution: B
a) Incorrect. In a parallel simulation, data that were processed by the
engagement client’s system are reprocessed through the auditor’s program
to determine if the output obtained matches the output generated by the
client’s system. This technique might identify problems with the client’s
processing but would not identify a fictitious or terminated employee.
b) Correct. This type of computer-assisted audit technique (CAAT)
program can identify employees who have no deductions. This is
important because fictitious or terminated employees will generally
not have any deductions.
c) Incorrect. A CAAT program can recalculate amounts such as gross pay, net
pay, taxes and other deductions, and accumulated or used leave times.
These recalculations can help determine if the payroll program is operating
correctly or if employee files have been altered, but would not identify a
fictitious or terminated employee.
d) Incorrect. In this type of CAAT program, certain actual transactions are
“tagged,” and as they proceed through the system, a data file is created that
traces the processing through the system and permits an auditor to
subsequently review that processing. This would not, however, identify a
fictitious or terminated employee.
Number of
outages per Number of
month months
0 3
1 2
2 4
3 3
12
Each power outage results in an out-of-pocket costs of P400. For P500 per
month, Diana can lease an auxiliary generator to provide power during outages.
If Diana leases an auxiliary generator in 2015 the estimated savings (or
additional expenditures) for 2015 would be?
ANSWER: Php836
PAS 12 Income Taxes provides that when different tax rates apply to
different levels of taxable income, deferred tax assets and liabilities are
measured using the average rates that are expected to apply the
taxable profit (tax loss) of the periods in which the temporary
differences are expected to reverse.
Expected tax to be paid in 2016
(500,000 x 20% + 50,000 x Php115,0
30%) 00
How much is the taxable income of John Snow Company for the year
2015?
Answer: P300,000
Solution:
Gross Income P500,000
Business expenses 200,000
Net Income from operations P300,000
Capital Gain P 50,000
Capital Loss (P100,000)
Net Capital Loss (50,000) -
Taxable Income P300,000
Section 39(C) of the NIRC states that losses from sales or exchanges of
capital assets shall be allowed only to the extent of the gains from such
sales or exchanges.
Answer: B
Sarah should use consolidation for both Sandra and Vanessa. Sarah has a
controlling financial interest in Sandra through a 75% direct ownership.
12/31/13 12/31/14
Development property P - P1,200,000
Other assets 6,000,000 6,000,000
P 6,000,000 P7,200,000
Loans
5.5% debenture stock P 2,500,000 P2,500,000
Bank loan at 6% per - 1,200,000
annum
Bank loan at 7% per 1,000,000 1,000,000
annum
P 3,000,000 P4,700,000
The bank loan with effective interest rate at 6% was drawn down to match
the development expenditure on April 1, July 1, and October 1 2014. The
5.5% debenture stocks were irredeemable. Expenditure was incurred on the
development as follows: April 1 – P600,000; July 1 – P400,000; October 1 –
P200,000. If all the borrowing were general (i.e., the bank loan 6% was not
specific to the development) and would have been avoided but for the
development, then the amount of interest to be capitalized would be
Answer: P46,130
Solution: D
a) Incorrect. Management are responsible for ensuring action on all internal
audit observations and recommendations, but some actions may take time to
complete and it is not practical to expect that all will be resolved when an
audit committee meets.
b) Incorrect. See answer “a”.
c) Incorrect. See answer “a”.
d) Correct. The chief audit executive is responsible for establishing
appropriate procedures for monitoring the progress by management
on all internal audit observations and recommendations. This
responsibility should be written into its charter by the audit
committee, and progress should be reported at each audit
committee meeting.
Answer: C. P9 million
SEMI-FINAL ROUND
Question No. 1 (EASY)
1. Which of the following observations by an auditor is most likely to indicate
the existence of control weaknesses over safeguarding of assets?
a) I and II only.
b) I and IV only.
c) II and III only.
d) II and IV only.
Question No. 2
(LW) Ant (37 y/o), Bug (27 y/o), Cat (17 y/o) are indebted to Dog in the
amount of P 27,000, jointly and severally. What is the maximum amount that
Dog can collect from Ant?
Answer: P 18,000.00
Answer: Php400,000
Margin of
Safety = Sales - BEP
Fixed cost
BEP =
CM
[25% *
P1,400,000]
35%
BEP = P1,000,000
Margin of = P1,400,000 -
Safety P1,000,000
Margin of = Question No. 4 (EASY)
Safety P400,000
(LW) Being made liable to a third person, a partner by estoppel may be
considered a
C a Silent partner
.
b Secret partner
.
c Nominal partner
.
d Dormant partner
.
At the beginning of January 2015, the government reduced the company tax
rate from 35% to 32% effective January 2, 2015. The recorded tax balances
represent the tax effect of future taxable amounts and future deductible
amounts at 35%. What amount of tax expense or savings should Passive
Company recognize as a result of the change in tax rates?
ANSWER: Php38,040
Deferred
Tax Asset
Restated balance (P443,800/35% Php405,76
x 32%) 0
Amount per books 443,800
Overstatement Php38,040
Deferred
Tax
Liability
Restated Balance Php998,40
(P1,092,000/35% x 32%) 0
Amount per books (1,092,000
)
Overstatement Php93,600
Answer: D
Current Ratio= Current Assets/Current Liabilities = CA = lower
Current Ratio
EPS = Net Income / Outstanding ordinary shares = NI = lower EPS
ANSWER: P170,200
October Outstanding Checks Php170,8
00
Book credits for November representing checks (620,000- 599,200
20,000-800)
Bank debits for November representing checks (600,000-200) (599,800)
November Outstanding Checks Php170,2
00
Solution: A
a) Correct. Without knowledge of guidelines for compliance, a
reasonable conclusion cannot be reached.
b) Incorrect. The fact that no minority has been hired this year is irrelevant
without knowing the total hires for the period.
c) Incorrect. An affirmative-action policy is clearly auditable.
d) Incorrect. This conclusion cannot be reached without knowledge of the actual
company policy.
The firm saves money if the interest savings is greater than the
increased cost of processing cash receipts. The increased cost of
processing cash receipts is equal to P5,000 (P10,000 bank charge –
P5,000 cost savings). The interest savings is measured by multiplying
the increase in average funds by the short-term interest rate. The firm
will have use of an additional P300,000 (P100,000 × 3 days) in average
funds. Therefore, the interest savings is equal to P15,000 (P300,000
× 5%), and the overall benefit is equal to P10,000 (P15,000 – P5,000).
Answer (a) is incorrect because it ignores the interest savings. Answer
(b) is incorrect because it only considers the bank charge.
Answer: A
The expense incurred will be recorded on the agency’s books. Entries will be
recorded only in the home office’s books upon establishment and
replenishment of the agency’s working funds.
The fair value of the plan asset at year-end includes the unpaid contributions
due from Smile Inc., to the fund as well as the non-transferable FVPL issued
by Smile Inc. and held by the fund amounting to Php700,000 and Php300,000
respectively. Determine the amount recognized in profit or loss in accordance
with PAS 19 Employee Benefits.
ANSWER: Php3,070,000
Current service cost Php750,00
0
Net interest expense (P5,200,000- 20,000
5,000,000) x 10%
Past service cost as a result of plan 2,300,000
amendment
Total amount recognized in profit or loss Php3,070,0
00
Question No. 13
(LW) Identify the term that does not belong to the group: prescription,
performance, presentation, merger.
Answer: presentation
How much is the estimated payment for the unsecured liabilities without
priority?
Answer: P76,500
Solution: C
a) Incorrect. This convenience sample is likely to emphasize people with lots of
available time at the expense of key employees who are too busy with
company work to respond.
b) Incorrect. Managers and supervisors often do not have the same needs and
perceptions as their subordinates and also may misperceive their views.
c) Correct. Because different employees probably have different
situations, needs, and experiences, stratified sampling would best
ensure that a representative sample would result.
d) Incorrect. This approach would produce a disproportionate number of highly
paid employees who may not have the same needs as lower-paid employees.
At December 31, 2015 the discount rate for expected cash flows is
10.25 percent for 2016. Furthermore, an appropriate risk adjustment
factor to reflect uncertainties in the cash flow estimates is an
increment of 6 percent.
ANSWER: Php106,000
Expected cash flow:
Minor repairs P10,000,000 x (3% x 10%) Php30,000
Major repairs and replacement
P10,000,000 x (2% x 90%) 180,000
Total 210,000
Answer: P316
Total Cost before Rework P53,200
Direct cost of Rework
DM 2,000
DL 3,200
FOH (3,200x150%) 4,800
Total Cost 63,200
Divide by: Number of units 200
Unit cost P316
Drawings
Net income Caine Osman Roberts
(loss)
2012 Php440,000 Php150,000 Php78,000 Php52,000
2013 185,000 150,000 78,000 52,000
2014 (105,000) 100,000 52,000 52,000
Answer: P11,250
Total income (440,000+185,000-105,000) P520,00
0
Adjustment (-6,500+1,500-20,000-1,500-3,500-2,000) (32,000)
Adjusted total net income 488,000
Multiplied by the P/L percentage 12.50%
Share in net income 61,000
Original investment 125,000
Total withdrawal (52,000 x 3) (156,00
0)
Share on the impairment of the furniture (45,000- (3,750)
15,000) x 12.50%
Fair value of the furniture (15,000)
Cash received by Roberts from the partnership P11,250
Solution: B
a) Incorrect. The organization’s information systems auditor would probably
have more knowledge of the organization’s computing systems.
b) Correct. The distinguishing characteristic of forensic auditing is the
knowledge needed to testify as an expert witness in a court of law.
Although a forensic auditor may possess the other attributes listed,
the organization’s information systems auditor may also possess
these skills or knowledge elements.
c) Incorrect. A forensic auditor would not necessarily have analytical or
organizational skills that are superior to those of the organization’s auditor.
d) Incorrect. See answer “c”.
Question No. 21 (EASY)
Which of the following is encouraged by PAS 41, Agriculture to be separately
disclosed when there is a production cycle of more than one year for a
biological asset?
A Physical change only
.
B Price change only
.
C Total change in value
.
D Physical change and price change
.
Answer: D
Paragraph 51 of PAS 41 Agriculture states that the fair value less costs
to sell of a biological asset can change due to both physical change
and price change in the market. Separate disclosure of physical and
price changes is useful in appraising current period performance and
future prospects, particularly when there is a production cycle of more
than one year. In such cases, an entity is encouraged to disclose, by
group or otherwise, the amount of change in fair value less costs to sell
included in profit or loss due to physical changes and due to price
changes. This information is generally less useful when the production
cycle is less than one year (for example, when raising chickens or
growing cereal crops).
a. P1,500,000
b. P2,000,000
c. P2,500,000
d. P3,000,000
ANSWER: B
BASIS: Section 90(A)(3) of the Tax Code, as amended
b. On December 31, 2013, WIGGLE purchased and received goods for P750,000.
Goods were shipped FOB seller. The invoice was recorded and paid January
2014. Goods are still unsold and were included in the physical count as of the
reporting date.
Answer: P1,900,000
Answer: P33.99
Answer: D
Answer: A
Section 5 of Revenue Regulations No. 10-2002 provides the ceiling on
entertainment, amusement and recreation (EAR) expense:
“SECTION 5. Ceiling on Entertainment, Amusement, and Recreation
Expense. — There shall be allowed a deduction from gross income for
entertainment, amusement and recreation expense, as defined in Section 2
of these Regulations, in an amount equivalent to the actual entertainment,
amusement and recreation expense paid or incurred within the taxable year
by the taxpayer, but in no case shall such deduction exceed 0.50 percent (%)
of net sales (i.e., gross sales less sales returns/allowances and sales
discounts) for taxpayers engaged in sale of goods or properties; or 1.00
percent (%) of net revenue (i.e., gross revenue less discounts) for taxpayers
engaged in sale of services, including exercise of profession and use or lease
of properties.”
Solution: A
a) Correct. If the auditor already suspects fraud, a more directed audit
approach would be appropriate.
b) Incorrect. Relatively stable operating data is a good scenario for using
analytical review.
c) Incorrect. Analytical review would be useful in identifying whether large, non-
recurring, or unusual transactions occurred.
d) Incorrect. Analytical review only needs to have accounts related to other
accounts or other independent data. It does not require that they be related
to revenue.
Question No. 29 (EASY)
On January 1, 2014, Applied Co. acquired 10%, P1M bonds for P951,963. The
principal is due on January 1, 2017 but interest is due annually starting
December 31, 2014. The yield rate on the bonds is 12%. The entity adopts the
calendar year reporting. Applied Co. prepares and publishes quarterly reports in
accordance with PAS 34 – Interim Financial Reporting as required by SEC.
In August 1, 2015, ABC Co. changed its business model. It was ascertained that the
investment in bonds at amortized cost should be reclassified to held for trading
securities on reclassification date. On October 1 to December 31, 2015, the bonds
were quoted at 103. On January 1, 2016, the bonds were quoted at 104.
Assume that Applied Co. early adopted PFRS 9 – Financial Instruments last 2013.
Determine the reclassification date.
Answer: B
Determine the equity interest in the associate and the loan carrying value.
Credits:
Other liabilities P 90,000 P 25,000
Capital stock 500,000 -
Retained earnings 100,000 -
Home office - 175,000
Unrealized profit in branch
inventory / loading 10,000 -
Sales 537,500 300,000
Shipments to branch 200,000 -
Branch profit 62,500 _______
Total credits P1,500,00 P 500,000
0
Additional information:
1. The home office ships merchandise to its branch at 120% of home
office cost.
2. Inventories at December 31, 2014 are P70,000 for the home office
and P60,000 for the branch. The branch inventory is at transfer
prices.
How much is the net income of the home office and the branch (own
books and in the home office’s books) for the year ended December
31, 2014?
Answer: P137,500; P62,500
Home office:
Sales P537,50
0
Cost of sales (50,000+500,000-200,000-70,000) (280,00
0)
Expenses (120,00
0)
Net income P137,50
0
Branch
Sales P300,00
0
Cost of sales (45,000+240,000-60,000) (225,00
0)
Expenses (50,000)
Net income, per branch’s books 25,000
Realized profit (225,000 x 20%/120%) 37,500
Net income, per home office’s books P62,500
Answer: B
Sarah should use consolidation for both Sandra and Vanessa. Sarah has a
controlling financial interest in Sandra through a 75% direct ownership.
How much are the ordinary and special deductions from the gross estate,
respectively?
a. P940,000 and P2,550,000
b. P940,000 and P2,650,000
c. P990,000 and P2,550,000
d. P990,000 and P2,650,000
ANSWER: A
Solution:
Ordinary Special
Family home (Maximum amount) P 1,000,000
Funeral (Maximum amount) P 200,000
Judicial expenses 500,000
Medical expenses (Maximum amount)
500,000
Claims against the estate 200,000
Taxes 25,000
Losses 15,000
Vanishing deduction
30,000
Standard deduction 1,000,000
Amounts receivable under Republic Act 4917
20,000
Total P 940,000 P
2,550,000
Question No. 37
(LW) A newly organized corporation issues 10,000 no-par shares with an
issue price of P 50.00. How much is the required minimum paid-in capital?
Answer: P 125,000
ANSWER: A
Question No. 39 (DIFFICULT)
Riverlands Corporation, a VAT-registered entity, is engaged in the business of
selling books, school supplies and novelty items. The following were taken
from the records of the Company:
a. (P68,160)
b. (P60,858)
c. P14,142
d. None of the above
Answer: A. (P68,160)
Based on Section 109 (R) of the Tax Code, sale of books is a VAT exempt
transaction. Hence, it is not subject to output VAT. Furthermore, the related input
VAT on the purchases is not creditable.
The company opted to use optional standard deduction in filing its 1st
quarter income tax return.
Answer: P20,000
P3.2
Sales million
0.2
Less: Sales discounts million
P3.0
Net sales million
Less: Cost of Sales
Cost of goods available for P3.0
sale million
1.0 2.0
Less: Ending inventory million million
Gross P 1.0
income million
Less: OSD 0.40
(40%) million
Taxable P 0.60
income million
Tax rate 30%
Tax due
(OSD) P180,000
MCIT (2%) P20,000
Answer: (P100)
On January 1, 2014 it unconditionally sells the right to receive the remaining five
interest payments to a bank. The derecognition provisions of IAS 39 (IFRS 9) are
applied to the interest payments as an identifiable part of the asset, leading to the
conclusion that they are required to be derecognized. On the same date, the current
market interest rate available to the borrower is 5%.
Answer: P31,713
Question No. 43
(LW) A corporation organized for business or profit is called Civil Corporation
while one which is organized for public charity is called ___________.
Answer: Eleemosynary Corporation
The entity measures the fair value less costs to sell of the disposal group as
P13,000,000.
Determine the carrying amount of the PPE (carried at revalued amount) after
classifying the group as held for sale. (Round off amounts in nearest peso)
a. P3,835,052 b. P3,880,597 c. P4,124,138 d. P --0--
If with choices
Assuming the annual lease payment is P60,000, determine the net amount recognized
in lessee’s profit or loss as of December 31, 2014 applying PAS 17 – Leases and
Financial instruments standards.
(Round PV factors to 4 decimal places)
At the end of January 2013, the city government provided SUNJI Company a zero
interest P30,000,000 3-year loan used by the Company in acquiring a building on the
same date. The prevailing market rate of interest for this type of loan is 8%. The
government imposes that the building must be used for social housing for ten years.
The Company estimated that there is reasonable assurance that it will meet the terms
of the grant. The Company will classify the building as owner occupied property after
the socialized housing project. The Company opted to use the cost model of
accounting the building with a 15-year life from the date of acquisition.
Answer: P567,050
Question No. 48
(LW) A written contract of sale of a lot is made between two parties for P
50,000. The lot is the only property of the seller who sold it to defraud a
creditor. Assuming that the buyer is aware of the fraudulent intent of the
seller, which term correctly describes that status of the contract of sale?
Void, Voidable, Rescissible, Unenforceable.
Answer: Rescissible
Answer: C
The requirement is to determine how unfavorable spending and output level
(volume) variances computed using the three-variance method would be
affected if the estimated activity level were increased. An increase in the
activity level used to allocate overhead to the product will lower the standard
fixed application rate (SFR). The formula for computing the SFR is
When computing the standard variance, the SVR is used but the SFR is not.
Therefore, this variance will not change with a change in activity level. The
output level variance is computed by comparing the budgeted amount of
total overhead costs for outputs achieved with the total amount of overhead
applied. Both computations use SVR, but only the applied figure uses the SFR.
In this problem, the output level variance is unfavorable indicating that the
budgeted amount is more than the applied amount. When the SFR is lowered
with the increase in activity level, less cost will be applied for every unit
produced. The output level variance will therefore be increased and become
more unfavorable.
Question No. 50
You have obtained the latest actuarial report prepared for SHOULD-BE Corp’s
pension plan. Information about the actuarial reports are presented below:
From the December 31, 2015 actuarial report
12/31/201 12/31/201
4 5
Present value of defined benefit 3,600,000 3,500,000
obligation
Fair value of plan assets at end of 3,900,000 3,800,000
year
Current service cost for year 345,000 320,000
Benefits paid in year 240,000 230,000
Contributions paid in year 430,000 410,000
Discount rate at end of year 4.5% 5.0%
Assume contributions and benefit payments occurred evenly throughout the year.
Based on the above information and assumptions determine the OCI component to of
the PBO to arrive at the ending balance on December 31, 2015: (Round of any
components in the computation to the nearest thousands) Indicate if debit or credit