6.1 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. Chapter 5 addresses the application of ASC 815-15 to embedded features that are commonly observed but unique to debt host contracts. This chapter discusses the application of the guidance to other types of common embedded features observed in debt, equity, lease, or other host contracts. Although the concepts and examples discussed represent those that are most commonly observed in practice, they are not intended to be all-inclusive with respect to the types of instruments and embedded features that could exist.