The end of LIBOR: Potential costly surprises and related accounting matters

In Part I of this series, we detail the economic issues caused by the planned discontinuance of LIBOR for entities using LIBOR as a reference rate including significantly higher interest cost and uncertainties about how interest rate swap derivatives currently using LIBOR will price. LIBOR is widely used in the United States (U.S.) to price commercial loans and interest rate swap derivatives. Part I also considers the issues with LIBOR replacements such as SOFR and