What does a "reserve fund study" entail?

The reserve fund study includes both a physical analysis of the condominium’s components and systems, as well as a financial analysis of the corporation’s current reserve fund balance, its income and expenses, and expected rate of inflation and rates of return on invested funds within the reserve fund. The study recommends a schedule for repair, maintenance and replacement of components and systems, and recommends what annual contributions will be needed during subsequent years of the study period.