FASB Proposal Would Link Embedded Derivatives to Their Host Contracts

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Feb. 25 — The Financial Accounting Standards Board proposed an accounting standards update that would require footnote disclosures that would allow investors to link a company's use of an embedded derivative with the host contract to which it is attached.

FASB, which issued the exposure draft on the disclosures Feb. 24, asks that comments be submitted by April 30.

In separate but related action Feb. 25, the board began its substantive deliberations to streamline and ease some of the requirements of hedge accounting rules.