Due to recent scandals and questions about its validity as a benchmark interest rate, LIBOR will end. According to the Federal Reserve and UK supervisors, LIBOR will expire by 30 June 2023 and will be replaced by the Secured Financing Rate (SOFR). As part of this release, the one-week and two-month USD-LIBOR rates will no longer be published after December 31, 2021. Hedging is a risk management strategy that limits or compensates for the likelihood of losses related to volatility in commodity, currency, securities or interest rate prices. Companies must recognize their derivatives at fair value on their balance sheets. If a derivative does not meet the speculative accounting criteria, any changes in its fair value are taken into account in the result. Note that entry 4 is moved to 5. Therefore, companies need to carefully evaluate the application of the shortcut method criteria to ensure that they comply with the rules. . . .