IFRS 9Chapter 10Lesson 1
Embedded derivatives
Step 1 of 6Learning objectives
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A hybrid financial asset is classified as a whole, without separation; for other hosts, the embedded derivative is separated only if three conditions are met.
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Learning objectives
- Say why a hybrid financial asset is not split into a host and a derivative.
- State the three conditions for separating an embedded derivative and record a separation.
- Place the designation of the whole hybrid contract at fair value through profit or loss.