CERTYNEX IFRS ACADEMY

A hybrid contract has as its host a contract that is not a financial asset within the scope of IFRS 9. Which conditions must be met for the embedded derivative to be separated and accounted for as a derivative? More than one answer is possible.

The embedded derivative has a fair value higher than that of the host contract.

The economic characteristics and risks of the embedded derivative are not closely related to those of the host.

A separate instrument with the same terms would meet the definition of a derivative.

The entity has designated the embedded derivative as a hedging instrument.

The hybrid contract is not measured at fair value through profit or loss.