Impact of Currency Fluctuation on Consolidated Revenues

ABC Corporation operates in multiple countries, and it is involved in the manufacturing of consumer electronics. The company consolidates its financial statements quarterly, which includes foreign subsidiaries in Europe and Asia. Due to fluctuating exchange rates, ABC Corporation's revenues from its foreign subsidiaries have varied significantly over the past year.

During its latest quarterly report, ABC Corporation noticed that the revenue reported from its European subsidiary increased substantially in the local currency, but when converted to USD, the total revenue appeared lower due to a weaker Euro. How will this exchange rate impact the financial statements of ABC Corporation?