Question 7 U.S. SFAS 89 encourages but does not mandate the following disclosures for foreign operation included in the consolidated statements: 1. Translate foreign accounts to dollars, then restate for U.S. inflation, if the dollar is the functional currency. II. Restate for foreign inflation, and then translate to U.S. dollars if the local currency is functional. III. Restate for U.S inflation, and then translate to U.S. dollars if the local currency is functional. A. I only B. I and II C. I and III D. All the above options are correct