Which of the following are criteria for determining whether an embedded derivative is required to be separated from its host contract and accounted for as derivative financial instrument? the economic characteristics and risks of the embedded derivative are not clearly and closely related to the economic characteristics and risks of the host contract. the combined contract (i.e, the hybrid) is not remeasured at fair value under otherwise applicable generally accepted accounting principles (GAAP) with changes in fair value reported in earnings as they occur. a separate instrument with the same terms as the embedded derivative would...be a derivative instrument all of the items listed herein are criteria which be met in order to require seperation
Which of the following are criteria for determining whether an embedded derivative is required to be separated from its host contract and accounted for as derivative financial instrument? the economic characteristics and risks of the embedded derivative are not clearly and closely related to the economic characteristics and risks of the host contract. the combined contract (i.e, the hybrid) is not remeasured at fair value under otherwise applicable generally accepted accounting principles (GAAP) with changes in fair value reported in earnings as they occur. a separate instrument with the same terms as the embedded derivative would...be a derivative instrument all of the items listed herein are criteria which be met in order to require seperation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question 21
Which of the following are criteria for determining whether an embedded derivative is required to be separated from its host contract and accounted for as derivative financial instrument?
|
the economic characteristics and risks of the embedded derivative are not clearly and closely related to the economic characteristics and risks of the host contract.
|
||
|
the combined contract (i.e, the hybrid) is not remeasured at fair value under otherwise applicable generally accepted accounting principles (GAAP) with changes in fair value reported in earnings as they occur.
|
||
|
a separate instrument with the same terms as the embedded derivative would...be a derivative instrument |
||
|
all of the items listed herein are criteria which be met in order to require seperation |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education