Final answer:
Gains or losses from foreign currency transactions are not considered extraordinary items but are typically included in other income or expense categories on the financial statements of a firm.
Step-by-step explanation:
The statement that "Gains or losses from foreign currency transactions or translations are reported in extraordinary items, net of tax" is false. According to the accounting standards, gains and losses from foreign currency transactions are typically recorded in the financial statements as part of the company's regular operations. As such, they are not considered extraordinary items but are usually recognized within other income or expense categories, depending on whether they result from everyday business activities or from the financial management of foreign currency exposures.