CERTYNEX IFRS ACADEMY

A trainee summarises the treatment of embedded derivatives in a financial asset host. Which sentence is wrong?

The contractual cash flow test applies to the hybrid asset taken as a whole.

The classification criteria apply to the whole hybrid financial asset.

The embedded derivative is separated from the host asset and then measured at fair value through profit or loss.

The embedded derivative is not separated when the host is a financial asset within the scope of the standard.