Impact of Strengthening Euro on Financial Statements

XYZ Corporation is a multinational company that operates in several countries, including the United States, Canada, and Germany. The company has a subsidiary in Germany that reports its financial results in euros. Due to fluctuations in exchange rates, the euro strengthens against the US dollar during the fiscal year. Consequently, XYZ Corporation understands that this currency movement will have specific impacts on its consolidated financial statements.

Considering the above scenario, which of the following statements accurately reflects the impact of the strengthening euro on XYZ Corporation's financial statements?