Three-Statement Model
Definition
An integrated financial model comprising an income statement, a cash flow statement, and a balance sheet, in which the three statements are dynamically linked such that a change in any input assumption flows through all three statements without manual recalculation. A set of three separate, unlinked financial statements does not constitute a three-statement model for the purposes of this Standard.
Common Misapplication
The most common misapplication is treating three separate, unlinked spreadsheet tabs as a three-statement model. The defining characteristic is dynamic integration, not the presence of all three statements. A model where the balance sheet must be manually updated after each revenue assumption change is not a three-statement model.
FFI Standard Reference
This term is defined and applied in Book 1, Section 1.1: The Three-Statement Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Three-Statement Model. https://ffistandard.org/glossary/three-statement-model/. 2026.