It's inherit bends of parent, and it works quite well with things like armor and such.  It does not, however, work well with some weight mapped figures.  I do know that inherit bends does not work with Dusk, but I don't know how well it works with SM figures like Roxie and Miki4 as I have never tested it.

The issue is that the prop is parented to the bone, but the mesh can move independently of the bone in a weightmapped figure.  One can make the prop into a conforming figure, but it then will distort as the mesh deforms, which would be a problem in the case of a ring bracelet or the face of a watch...

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