68 Understanding the Numbers part of net income. With the other method, the translation adjustment will be reported as part of other comprehensive Foreign-currency gains and losses can also result from the use of various currency contracts, such as forwards, futures, options, and swaps, entered into for both hedging and speculation. It is not uncommon to observe foreign exchange gains and losses year after year in a company’s income statement. The amounts of these items, however, as well as whether they are gains or losses are often very irregular, making them candidates for nonrecurring classification. .