Comparison GMA and PAA page 36
About the CSM, from the source text the presence of a CSM in PAA does not make a distinction on whether the contract is onerous or not.
Battlecard 58 on the other hand does specify that CSM for PAA is not required for non-onerous contracts only.
I believe even if the contract was onerous the CSM wouldn't exist under PAA, right?
Comments
This is mainly meant to help with conceptualizing the differences between PAA and GMM.
But yes, if you are onerous under PAA you obviously do not have a CSM (more nuance below).
What's most important to remember is that if you are onerous under PAA, then you are basically using the GMA approach which means you need to calculate your FCF and CSM/LC.
When onerous, it's not that you don't have a CSM, it just follows that your CSM is 0