The shortcut method is a qualitative method of analysis approved only by the US accounting standards to test the effectiveness of a hedge relationship. In order to adopt hedge accounting, companies may use quantitative methods like the dollar offset method or qualitative methods, the most common of which are the critical terms match (CTM) method. The shortcut method exempts companies from having to prove the future and continuing effectiveness of a hedge if they meet a set of criteria. It is accepted in cases when the hedging relationship involves interest rate swaps and meets a series of very specific criteria. These limitations in effect restrict its use to certain types of simplified hedging relationships involving interest rate risk.