Why this is mistaken
A feature does not disappear because it is embedded in a larger contract. Identify the host and every feature that can change cash flows. Preserve the economic characteristics, risks, settlement terms, and relevant elections for a qualified Topic 815 review. The correction does not assert bifurcation from a label. It supplies the contract evidence and states which separation, scope, or measurement conclusion remains open.
Where to watch
When this mistake may appear
- The option is part of the note, so it needs no separate analysis.
Check your work
Your work may contain this mistake if:
- Reviews the host instrument but does not inventory conversion, call, put, indexation, or settlement terms.