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Chapter 4 — Identification of and Accounting for Embedded Derivatives

4.4 Accounting for Embedded Derivatives

4.4 Accounting for Embedded Derivatives

Footnotes

2
For more information about Instrument C, see remarks of then SEC Professional Accounting Fellow Robert Comerford at the 2003 AICPA Conference on Current SEC Developments.
3
If a debt instrument has been refinanced or modified in such a way that it is substantially different from the original instrument (i.e., an extinguishment of the original instrument), a remeasurement under ASC 825 has occurred and the fair value option could be elected (or no longer applied if it was previously elected). See ASC 825-10-25-5 for specific examples. A modification of a debt instrument that is not an extinguishment would not be considered a remeasurement event. See Section 12.3.2.2.4 of Deloitte’s Roadmap Fair Value Measurements and Disclosures (Including the Fair Value Option).