Defined by FASB in FAS 133. An implicit or explicit term in a contract such as a bond, insurance policy, or lease, that meets the definition of a derivative even though the entire contract may not. Under FAS 133, the certain embedded derivatives must be separated from the host contract for purposes of reporting and accounting. See: embedded option and FAS 133.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). embedded derivative instrument. Retrieved September 30, 2026, from http://smartdefine.org/embedded_derivative_instrument/definitions/1152875 |
| Chicago | Barry Goldsmith. 2010. "embedded derivative instrument" http://smartdefine.org/embedded_derivative_instrument/definitions/1152875 (accessed September 30, 2026). |
| Harvard | Barry Goldsmith 2010, embedded derivative instrument, Smart Define, viewed 30 September, 2026, <http://smartdefine.org/embedded_derivative_instrument/definitions/1152875>. |
| MLA | Barry Goldsmith. "embedded derivative instrument" 21 October 2010. Web. 30 September 2026. <http://smartdefine.org/embedded_derivative_instrument/definitions/1152875> |