23
It
is
important to consider the
main activity of
the Pension Fund as explain
in Figure 2.2
when set up the objective of financial statement analysis. The three main activities in the
Pension Fund are collecting plan contribution from the plan sponsor and the participants,
invest or redeem
investment and to receive the result of the
investment, and payment of
pension benefit.
No.
General Objectives
No.
Specific Objectives
1.
To determine the compliance of
the Pension Fund toward existing
regulation and law in
reporting/presentation the
financial statement and the
management of the Pension Fund
wealth.
1.A
To determine the compliance of
Financial statement presentation
with existing regulation
1.B
To determine the compliance of
Pension Fund wealth management
toward existing regulation
2.
To determine the investment
efficiency and financial
management
2.A
Determine the rate of return from
Pension Fund investment
2.B
Compare the
actuarial assumption
with the realization
2.C
To determine result generated from
assets
2.D
To value cash flows from
investment activity
3
To determine the financial safety
of Pension Fund
3.A
To determine the fund adequacy
3.B
To determine the compliance of
contribution collection
3.C
To determine the trend from the
financial activity
4.
To determine the ability of
Pension
Fund in fulfill the
obligation toward the plan
participant
4.A
To determine the compliance of plan
administrator to fulfill the obligation
of pension benefit payment
Table 2.3 Objectives of pension fund financial statement analysis
Source: Sukemi and Muliawan 2005. p.50-51
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