Let us guide you through the complexities of International Accounting Standards 21 and streamline your accounting and reporting processes.


    Here’s what you get

    Foreign currency invoicing

    Exchange rates guaranteed by forward contracts

    Forward contracts variable by the use of currency options

    Expert advisory service

    Minimisation of FX risk

    Specialist foreign exchange providers

    Suitable if you

    1. Trade internationally, partly or wholly
    2. Traditionally invoice in sterling
    3. Receive payment in foreign currency
    4. Experience delays between supply and payment
    5. Seek to make ancillary profits on foreign exchange transactions
    6. Need a comprehensive system to record gains and losses



    Accounting Clarity

    The new guidelines under International Accounting Standards 21 (IAS21) provide much-needed clarification in the conduct, recording and reporting of corporate foreign exchange transactions.

    Choice of FX Rate Sources

    Your business can use one of several sources of exchange rates such as the London closing rate or the rates provided by your own bank. Alternatively, several internet sites provide historic and current exchange rates.

    HMRC Compliance

    Whichever source is used, provided that it is used consistently for all transactions, will satisfy the requirements of HMRC. Smaller businesses will most often rely on their banks for exchange rates even though they will usually offer less attractive rates but they are not obliged to do so.




    IAS 21 Guidelines

    IAS 21 provides two key guidelines for proper reporting of business foreign exchange transactions in financial statements: the correct reporting of gains or losses from foreign exchange rates; and guidance on which exchange rates to use.

    Accounting Guidance

    When financial statements are prepared at the end of the accounting period, businesses are required to convert all income received and payments made in foreign currencies into Sterling. Assets and liabilities held in foreign currencies must also be converted. Gains or losses as a result of these transactions must be shown in the profit and loss account and balance sheet.

    VAT Made Simple

    HMRC publishes average monthly rates of exchange that businesses are obliged to use in the preparation of VAT returns. Many businesses also find it much more consistent to use the VAT rates of exchange to record business foreign exchange transactions in their financial statements.

    Expert Support

    Stellar Capital works with partners who offer a range of financial solutions which can effectively manage all your business foreign exchange requirements. Whether yours is a large organisation or an SME, Stellar Capital can help with your international payment requirements and reduce your foreign currency risk.


    1. Stellar Capital will assess your foreign exchange transaction processes
    2. Maximise profits on exchange rate gains
    3. Minimise the risk of foreign exchange losses
    4. Easily invoice and receive payments in foreign currencies
    5. Conform to all HMRC recording and reporting requirements



      Foreign Exchange Management

      You may already be trading internationally or you might be taking your first tentative steps into this arena. Whatever your circumstances, you need a partner who can help you maximise the benefits and value of the foreign exchange system. Stellar Capital works with strategic partners to obtain market leading rates and protect your profit margins from currency fluctuations.

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      Hedging Strategies

      Hedging strategies are bespoke solutions, carefully aligned with the operational and financial factors that make every business unique. Who you trade with, where you trade and how you trade are essential questions in planning ways to limit your corporate foreign exchange exposure. Stellar Capital can connect you with highly experienced financial partners who can give your business access to a comprehensive range of hedging strategies.

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      FX Risk Management

      Flexible strategies can track currency market conditions and keep your business in the healthiest position to avoid or minimise the damage and loss that exchange rates can visit on any organisation. It is not one formula or one fixed plan – every business has its own profile, its own form and level of exposure and its own best solutions.

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      Stellar capital is equipped to demonstrate the areas in which your operations can be improved to maximise value and profits.

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      Stellar Capital is committed to helping our clients find the best solutions for every funding challenge.

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