Accounting regulations and their effect on sustainable production practices in livestock companies in Paraguay

Abstract

This article analyzes the impact of accounting regulations on the implementation of sustainable production practices in livestock companies in Paraguay, highlighting their relevance to achieve environmental and economic sustainability in the sector. The implications of local regulations such as Law 3001/2006 on the Environment and international standards such as the International Financial Reporting Standards (IFRS) and the Global Reporting Initiative (GRI) are examined. Livestock farming, being one of the main economic activities in the country, faces increasing pressures to adopt responsible practices that comply with international sustainability standards. However, local accounting regulations present gaps that hinder the adequate accounting of sustainable activities, such as waste management and the circular economy. Through a qualitative, bibliographic-documentary approach and an explanatory design, national regulations and international standards such as International Financial Reporting Standards (IFRS) S1 and S2 were reviewed. The results indicate that the lack of tax incentives and clear guidelines in Paraguayan regulations limits the adoption of sustainable technologies and the transparent recording of investments in responsible practices. Likewise, a low alignment with regulations of neighboring countries that have made progress in integrating sustainability into corporate accounting was identified. The article concludes that it is essential to reform accounting regulations in Paraguay to promote financial transparency and facilitate the implementation of sustainable strategies in the livestock sector. This reform should include economic incentives, standardized metrics and greater alignment with international standards, thus contributing to improving the competitiveness of the sector and its positive environmental impact.