Kappa Inc. uses the euro as its functional currency. Kappa is part of a group of companies with UK Pound Sterling as their reporting currency.

Which exchange rate should be used to translate Kappa Inc.'s inventory to be consolidated into the group's financial statements?

a. Exchange rate at fiscal year-end

b. Exchange rate at the beginning of the year

C. Average exchange rate for the year

d. Exchange rate at the transfer of control