Accounting Standards Update · 2010
ASU 2010-11 — Derivatives and Hedging (Topic 815)
Affects815 Derivatives and Hedging
This Update clarifies the type of embedded credit derivative that is exempt from embedded derivative bifurcation requirements. Only one form of embedded credit derivative qualifies for the exemption—one that is related only to the subordination of one financial instrument to another. As a result, entities that have contracts containing an embedded credit derivative feature in a form other than such subordination may need to separately account for the embedded credit derivative feature.
Issued: March 5, 2010
Text as published in the FASB Accounting Standards Codification, Basic View.