IFRIC 9 and IAS 39 amendments 'Embedded Derivatives'

The proposed amendments clarify that entities are required to assess whether hybrid contracts reclassified out of the fair value through profit or loss category contain embedded derivatives that require separation and that assessment has to be made based on the conditions that existed at the time of the initial recognition of the contracts.

EFRAG published its comment letter on 28 January 2009 and its endorsement advice on 27 May 2009.