A transition to global and international financial standards
What are the main changes that publicly traded issuers must make in order to comply with International Financial Reporting Standards (IFRS)?
In the first place, and due to the complexity in the application of IFRS (International Financial Reporting Standards), it was necessary to establish technical accounting standards as a first step towards their generalized application.
The financial statements of the issuing companies must be prepared and presented in accordance with the reference framework of the Financial Reporting Standards (NIF) issued by the Council of Public Accountants of Paraguay, which will be the applicable standards for the preparation and presentation of the accounting information of such companies, as a transition to the application of the International Financial Reporting Standards (IFRS).
The Financial Reporting Standards (NIF) consist of 23 Standards issued as a reference by the Council of Public Accountants of Paraguay, as a transitional bridge to the full adoption of IFRS.
What are the deadlines established by the regulations for open capital issuers to complete their adaptations to the FRS and what penalties could they face in case of non-compliance?
The accounting reference framework to be applied by all securities issuers registered with the Superintendency of Securities (SV), and the obligation of its adoption already dates from the fiscal year 2021.
¿What kind of support and services does Baker Tilly offer to help companies in the transition to the application of the NIF?
Baker Tilly offers its clients training to the administrative accounting staff of the company, of the Financial Reporting Standards (NIF) issued by the Council of Public Accountants of Paraguay, establishing similarities and differences with the International Financial Reporting Standards (IFRS) issued by the IASB (International Accounting Standards Board) for the purpose of adoption.
Also as a firm we offer support with respect to the full adoption of the IFRS Financial Reporting Standards issued by the Public Accountants Council of Paraguay.
How does the transition to IFRS in the presentation of financial statements affect companies' relationship with their investors and other stakeholders?
International Financial Reporting Standards (IFRS) are standards for accounting practice established to ensure transparent, accurate and understandable financial information on a global basis. They are initially created for those large public companies that are listed on the stock exchange, by “Public Companies” I do not mean state-owned entities but rather companies that make their financial information available to the general public, investors, lenders, various creditors.
They ensure that the information provided to users of financial information is reliable and trustworthy for decision making.
What are the main challenges faced by Baker Tilly in the current economic environment in Paraguay? What opportunities do you see for the future growth of the company in the country?
The country has been economically stable for a long time in the region, our inflation is normalized, and taking into account the geographical position of Paraguay in the region, we should receive a good number of transnational companies that come to invest in the country, it is already happening with our neighbors Argentina, Brazil, Uruguay that are opening their companies or branches in the country.
Paraguay today does not live isolated in the world, we are one of the world's largest exporters of soybeans, grains, meat exporters in South America, major producer of clean and cheap energy, we will inevitably have new requirements for new investments and for that the profession must be prepared to respond.
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