# Financial instrument, embedded (embedded financial instrument)

- Canonical URL: https://www.gerhardmerk.de/financial-instrument-embedded-embedded-financial-instrument
- Post ID: 588477
- Modified: 2023-07-25T21:01:33+00:00
- Language: en

## Definition

According to IAS 39.10, a financial instrument that - necessarily including a non-derivative host contract - results in a portion of the instrument's cash flows (hybrids) being subject to fluctuations (oscillations: vibrations above and below a mean value) similar to those of a stand-alone derivative. - An embedded derivative changes some or all of the cash flows from a contract depending on a specified interest rate, financial instrument price, commodity price, foreign exchange rate, price or rate index, credit rating or index, or other market-varying variable. - See derivative. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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