|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies|
|IFRS Standards are permitted but not required for domestic public companies||Permitted, but very few companies use IFRS Standards.|
|IFRS Standards are required or permitted for listings by foreign companies|
|The IFRS for SMEs Standard is required or permitted||The IFRS for SMEs Standard is permitted, but very few companies use it. Nearly all SMEs use Paraguayan national accounting standards.|
|The IFRS for SMEs Standard is under consideration|
Ministerio de Hacienda [Ministry of Finance]
Consejo de Contadores Públicos del Paraguay (Consejo) [Council of Public Accountants of Paraguay]
Central Bank of Paraguay – Superintendence of Banks
Role of the organisation
The Ministry of Finance has authority to establish accounting standards for all entities in Paraguay other than banks and financial institutions.
The Consejo is the professional association of public accountants in Paraguay. The Consejo advises the Ministry of Finance with regard to accounting standards.
Accounting standards for banks and other financial institutions are established by the Central Bank of Paraguay.
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
The Consejo states that it is committed adopting IFRS Standards in Paraguay. Currently it is developing national accounting standards ‘based on IFRS’. The Consejo states that it ‘was created in 2005 to formalise the profession and is very much committed to disclose and harmonise accounting standards and local practices, as much as possible, with IFRS’. The Consejo has signed a licence with the IFRS Foundation for use of copyright material. Also by license, the Consejo makes available to its members IFRS Standards in Spanish online via eIFRS. The Consejo’s goal is to enable Paraguayan accountants to ‘learn the basics of IFRS Standards and adopt them in a period of approximately five years’.
With regard to financial institutions, the Central Bank states: ‘Through seminars and conferences, the Central Bank has made public its intention to adopt international standards of financial information by the financial institutions under its supervision. This corresponds to the attainment of the objectives included in the bank's strategic plan.’
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
A small number of large companies in Paraguay have voluntarily adopted IFRS Standards. They use IFRS Standards as issued by the Board. Companies that use IFRS Standards are not required to reconcile to Paraguayan national accounting standards.
With regard to financial institutions the Central Bank says: ‘The Superintendence has a plan for adoption of the IFRS. The Superintendence has formed a group dedicated to this assignment. This group is in charge of having meetings with the sectors involved and measuring the impact of changing the actual rules. It will also lead to hiring a foreign consultant to make an analysis of the current situation of the financial market in our country.’
If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED?
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
Permitted, but very few companies use IFRS Standards.
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
Which IFRS Standards are required or permitted for domestic companies?
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
Are IFRS Standards incorporated into law or regulations?
If yes, how does that process work?
If no, how do IFRS Standards become a requirement in the jurisdiction?
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
If yes, what is the process?
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
If yes, what are the changes?
Other comments regarding the use of IFRS Standards in the jurisdiction?
Are IFRS Standards translated into the local language?
The IFRS Foundation develops and publishes a Spanish translation of IFRS Standards.
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
The translation follows the official IFRS Foundation translation process.