Translation Method for Multinational Consolidation

ABC Corp. is a multinational company operating in several countries, and its subsidiary in Brazil uses the Brazilian Real (BRL) as its functional currency. The financial statements of this subsidiary are prepared in BRL, but ABC Corp. needs to translate them into US dollars (USD) for consolidation purposes. According to the IFRS standards, ABC Corp. must use a specific method for translating the financial statements of its subsidiary.

Consider the following translation methods:

- Temporal Method: Under this method, monetary items are translated at the current exchange rate, while non-monetary items are translated at historical exchange rates.

- Current Rate Method: Under this method, all assets and liabilities are translated at the current exchange rate, while income statement items are translated at the average rate for the period.

- Mixed Method: This method allows flexibility in using different exchange rates depending on the nature of the item being translated.

Which translation method should ABC Corp. use for its Brazilian subsidiary when consolidating the financial statements?