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2.2.3 Objectives of Pension Fund Financial Statement Analysis
In
general
financial
statement
analysis
is prepared
to
help
investors
and
creditors
understand the financial history of a company and use that knowledge to predict the
future
cash
flows and price
appreciation. John J. Wild
in
his book
“Financial Statement
Analysis” Eight Edition stated:
‘The
foundation of a reliable analysis
is an
understanding of
its objectives.
This
understanding leads to efficiency of effort, effectiveness in application, and
relevance in focus. Most analyses face constrains on availability of information.
Decisions
must
be
made
using
incomplete
or
inadequate
information.
One
goal
of financial statement analysis is reducing uncertainty through a rigorous and
sound evaluation.’
The objectives of financial statement analysis according to Bernstein in 1983 (Cited in
Harahap, p.197)
1. Screening:
Analysis perform
with the objectives of understand the situation and condition
of a company through the financial statement without directly went to the field.
2. Understanding:
Understand the company, financial condition, and company profits
3. Forecasting:
Analysis use to predict the financial condition in the future
4. Diagnosis:
Analysis intended to see the possibility of problems in the management,
operational, financing or other problems in the company.
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