In the footnotes to a U.S. company's annual report, it says "Certain foreign-currency-denominated assets are used, in part, to protect the value of the Company's investments in certain foreign subsidiaries.....from changes in foreign currency exchange rates."

Which statement is most likely to be true regarding this footnote disclosure?

A. These subsidiaries are not consolidated on the company's financial statements. B. The functional currency of these subsidiaries is the U.S. dollar. C. Hedge accounting is necessary to match the gains/losses on the hedge investments against the losses/gains on the subsidiaries. D. The gain or loss from converting these subsidiaries' accounts to U.S. dollars appears in the company's other comprehensive income.