Module VI· Three-Statement Model MechanicsAdvanced
Question
How do you model pensions in a DACH three-statement model?
Answer
Model pension service cost in operating expense, net interest in finance cost, cash contributions in cash flow, and actuarial remeasurements in OCI / equity if needed. Roll forward pension liability as opening liability + service cost + interest cost + remeasurements - contributions. For DACH targets, pay attention to HGB versus IFRS measurement and funding status.