IASB clarifies the accounting treatment for embedded derivatives.

The International Accounting Standards Board clarified the accounting treatment of embedded derivatives for entities that make use of the reclassification amendment issued by the IASB in Oct. 2008.

The reclassification amendment allows entities to reclassify particular financial instruments out of the "at fair value through profit or loss" category in specific circumstances. The amendments to IFRIC 9 and IAS 39 issued clarify that on reclassification of a financial asset out of the "at fair value through profit or loss" category all embedded derivatives have to be assessed and, if necessary...