Entrepreneurial risk management contributes to increasing the value of a company by reducing unwanted financial risks through derivatives. The corresponding accounting representation of the achieved risk hedging in the annual financial statements according to IAS/IFRS is linked to the fulfillment of various requirements and is, not least due to its complexity, the subject of intense and controversial discussions in both academia and practice. Dana Doege sheds light on two previously unexamined aspects of hedge accounting. These include, on the one hand, the formulation of principle-based designation regulations for underlying and hedging transactions. On the other hand, a proposal for demonstrating the effectiveness of hedging relationships is developed, which enables cross-company comparability of risk hedging.