Artículo 4.3.5. IFRS 9 Paragraph 4.3.5

Despite paragraphs 4.3.3 and 4.3.4 , if a contract contains one or more embedded derivatives and the host is not an asset within the scope of this Standard, an entity may designate the entire hybrid contract as at fair value through profit or loss unless: (a) the embedded derivative(s) do(es) not significantly modify the cash flows that otherwise would be required by the contract; or (b) it is clear with little or no analysis when a similar hybrid instrument is first considered that separation of the embedded derivative(s) is prohibited, such as a prepayment option embedded in a loan that permits the holder to prepay the loan for approximately its amortised cost . [ Refer: paragraphs B4.3.9⁠–⁠B4.3.10 Basis for Conclusions paragraphs BCZ4.67⁠–⁠BCZ4.70 and BC4.81⁠–⁠BC4.82 ] [ Note: The IFRS Interpretations Committee recommended, and the Board proposed, to clarify paragraph 11A of IAS 39 (now paragraph 4.3.5 of IFRS 9 ) as part of Improvements to IFRSs in August 2008. The Board proposed to specify whether it applies only to contracts with embedded derivatives that have financial hosts, or whether the fair value option can be applied to all contracts with embedded derivatives. The Board did not finalise its proposal.]