The cumulative translation adjustment related to foreign currency hedges is included in which component?

The cumulative translation adjustment related to foreign currency hedges is included in Other Comprehensive Income (OCI) because it represents the unrealized gains and losses from translation adjustments that arise from the conversion of foreign currency financial statements into the reporting currency. This translation adjustment is not recognized in current earnings until the underlying hedged position is settled or disposed of. Instead, it reflects changes in exchange rates that have not yet been realized and therefore do not affect operational performance immediately. This treatment aligns with the purpose of OCI, which captures specific transactions or events outside of net income, ensuring that the financial statements provide a more comprehensive overview of a company's financial position.