5.1 Overview

As previously discussed in Chapter 4, ASC 815-15 outlines specific criteria that an entity must consider when determining whether an embedded feature should be bifurcated from its host contract. This chapter includes practical applications of the guidance in ASC 815-15 to embedded features that are commonly found in and unique to debt host contracts. See also Chapter 6 for discussion of embedded features that are commonly found in other types of contracts (including debt contracts).