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the beginning of
the
year plus the balance of
net asset at
the end of the
year and
divided by two.
3. Solvability
ratios
refer to
the ability of a corporation to
meet
its
long-term
fixed
expenses
and
to
accomplish
long-term expansion
and
growth.
Based
on
the
finance minister decree no 510/KMK.06/2002 Solvability ratio computed as:
Solvability Ratio = Net Assets / Solvability Liability
Net
asset
figures
retrieved
from
the
net
assets
report.
Solvability
liability
calculated by the actuary and reported in the actuary report.
4. Fund Adequacy Ratio shows the ability of a company to fulfill its obligation with
the assumption that the pension fund is going-concern. Based on the finance
minister decree no 510/KMK.06/2002 Fund Adequacy Ratio computed as:
Fund Adequacy Ratio = Net Assets / Actuarial obligation
Net
assets
figure
retrieve
from the
net
assets
report
or
from
the
changes
in
net
assets report.
Actuarial obligation
figure retrieve
from the balance sheet or
from
the actuarial report.
According to the finance minister decree no 510/KMK.06/2002 there are three quality of
funding
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