Paragraph 6 of Statement 133 defines the characteristics that a contract must be considered a derivative instrument as a whole. Paragraph 12 concerns contracts that do not fully meet the definition of a derivative instrument in paragraph 6, but may contain provisions that constitute an integratedrivative instrument that could justify separate accounting. (Note that Statement 155 was issued in February 2006 and allows for fair value choice for hybrid instruments that would otherwise require a fork. However, Statement 155 does not apply to hybrid financial instruments covered in paragraph 8 of FASB Statement 107, information relating to the fair value of financial instruments, including insurance contracts, as presented in FASB 60 extracts, insurance company accounts and reports and No. 97, the accounting and reporting of insurance companies for certain long-term contracts and profits made and losses resulting from the sale of stakes, are described. , by means other than financial guarantees and investment contracts. Hybrid instruments intended to be fully accounted for at fair value cannot be used as hedging instruments in a hedging relationship.) Paragraph 12 states in part that an incorporated derivative instrument must be separated from the registration contract and counted as a derivative if and only if all the following criteria are met: Example 2: Remainder Trust (periodically some variable payments) [also known as a non-profit remaining unitrust] Common shares contribute to the control of the organization NFP, which must make 20 annual cash payments to the donor or recipient that correspond to a certain percentage of the fair value of assets at the beginning of each fiscal year. After 20 payments, the remaining units will be donated to the NFP organization. For the duration of the agreement (20 years), the NFP organization has a responsibility that must be reduced to two parts because it contains an integratedrivative instrument that justifies separate accounting, unless a fair value choice takes place in accordance with Declaration 155.

Under paragraph 12, liabilities are a hybrid instrument, consisting of a host debt contract and an incorporated equity derivative, which is not clearly and closely linked to the debtor and which corresponds to the definition of a derivative instrument if it were independent. In other words, it has an underlying (share price) and a nominal amount (number of units in the trust at the beginning of each year), to satisfy the net non- or smaller investment characteristic of paragraph 6, point b), and to satisfy the incompreatation characteristic referred to in paragraph 6, point c) (each annual payment being adjusted to reflect the effect of derivative on shares).