Impact of Currency Appreciation on Multinational Financial Statements

XYZ Corporation is a multinational company that operates in both the United States and Europe. The company generates sales in euros while its reporting currency is U.S. dollars. At the end of the accounting period, XYZ decides to convert its euro-denominated assets and liabilities into U.S. dollars using the spot exchange rate on the reporting date. Given that the euro has appreciated against the U.S. dollar during the reporting period, what is the impact on XYZ’s financial statements?