Funny report held in arm (7)
I believe the answer is:
humerus
'in arm' is the definition.
(I know that humerus is part of arm)
'funny report' is the wordplay.
'funny' becomes 'humorous' (similar in meaning).
'report' indicates a 'sounds like' (homophone) clue (as heard, or reported by someone).
'humorous' is a homophone of 'HUMERUS'.
'held' is the link.
This may not be right. It may belong to another bit of the clue.
Can you help me to learn more?
(Other definitions for humerus that I've seen before include "Boneo of the upper arm" , "Upper-arm bone" , "Arm bone (that sounds comical)" , "Arm bone - the "funny bone"" , "Bone that sounds funny?" .)