Because hedge accounting does not apply, FX gains or
losses on hedging transactions classified as an undesignated
hedge are always reported currently in earnings. (This
category could also be labeled as "hedges not requiring hedge
accounting" or as "nonhedge accounting hedges.")
For these types of hedges, the hedging gain or loss
reported currently in earnings is automatically offset by the
recognized loss or gain on the hedged item that is also
reported currently in earnings.Thus no special treatment need
be set forth in FAS 133 to obtain offsetting concurrent
recognition (as is required for the other three categories of
hedges).