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Chapter 6 — Other Common Embedded Features

6.6 Features Related to Interest Rate, Credit Risk, or Inflation-Indexed Payments Embedded in an Equity Host

6.6 Features Related to Interest Rate, Credit Risk, or Inflation-Indexed Payments Embedded in an Equity Host

Footnotes

2
The definition of a debt security in ASC 320 specifically includes investments in preferred stock that are redeemable at the investor’s option. In this example, it would not be appropriate to account for the preferred stock as an equity security within the scope of ASC 321.