hybrid financial instrument
Noun
GAAP
A financial instrument comprised of both a liability and an equity component, which, unless certain conditions requiring bifurcation of the embedded feature(s) are met, is generally accounted for as a financial liability or equity instrument in its entirety.
Synonym(s):
- hybrid; hybrid security.
Comment:
Notwithstanding convertible debt with a cash conversion feature, which is accounted for also under US GAAP like a compound financial instrument under IFRS.