Derivatives: Embedded Derivatives

Embedded derivatives are derivatives that are combined with other contracts (host instruments) to make a hybrid instrument. ASC 815 has specific rules relating to identifying embedded derivatives and determining whether they should be separated (bifurcated) from the host instrument.

Our 1-hour online eLearning course provides an in-depth understanding of the accounting for embedded derivatives under ASC 815. After introducing embedded derivatives, and the concepts of host and hybrid instruments, this course provides the learner with the 3-step consideration when determining whether an embedded derivative needs to be separated (i.e. bifurcated) from the host. Learners get to apply their knowledge to various class examples and case studies. The course concludes with a look at "real-life" financial statements and the presentation and disclosures related to these instruments.


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