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OCR: The conso olidarcr financia statements include the accounts Macromedia Jec. and its wholly owned subsic liaries Macromedia Europx Limited located England Macromedis Pacific Pry Ltd., located Australia anc Macromedia Japan KK located in Japen All significant intercompany balances and transactions have been eliminated in consolidation. Fore gn Currency Translation In fiscal 1995 the Company changed its functional currency fron the local currency to the United States dollar Translation gains or losses reflected in ne income Prior to fiscal 1995 local currencies were the functional currency s00 assets and liabilities denominated in foreign currencies were rranslated to s doilars the exchange rate on the balance sheet date Revenues costs, and expenses were translated average rates of exchange p ...