How Have the Accounting Standards in Mexico Changed?

Mexico accounting tax
How Have the Accounting Standards in Mexico Changed?

When we speak about business in Mexico, we usually think about the legal, financial, fiscal or tax issues, but not always about accounting. However, in order to establish and operate a successful business one needs to take accounting into consideration.

Mexican Accounting Standards

A couple of years ago Mexico had its own accounting standards (based on and translated from other country standards). Nowadays, with foreign investment, Mexico has needed to standardize their NIF’s (Normas de Información Financiera) to international levels by using the IFRS (International Accounting Reporting Standards), turning them into NIIF’s (Normas Internacionales de Información Financiera). Individuals and businesses operating in Mexico should become familiar with these as knowledge on the IFRS is important as a means of resolving legal and fiscal issues.

This transition has had, in general, a good impact on economic entities in terms of information and decision-making. This has encouraged both local and international investment in Mexico. Some examples of the positive impacts can be seen below:

  • Easier decision making for users of financial information, investors, analysts and regulators.
  • The comparability of information has improved. The whole world can communicate in the same financial and accounting language.
  • Multi-national entities have a more accurate explanation of financial statements and information.

This reform provides many benefits. Furthermore, it is widely expected that within 3 to 5 years there will be a global standardization of financial information. This will increase the pressure on the state and corporations to build credibility and trust of financial information on a global level.

Mexico Business Services, as part of the Biz Latin Hub group is able to help your company to adapt to the IFRS processes in order to take your business to the next level. Get in contact with Alex at here for more information.

Receive the latest news and advice about expanding your business globally.

Subscribe to our newsletter to receive the latest business news and advice about entity formation, legal entity compliance, accounting, back office and fiscal requirements.

  • This field is for validation purposes and should be left unchanged.

Marketing permission: By submitting this form, I give my consent for Biz Latin Hub to be in contact with me via email using the information that I have provided in this form and for the purpose of providing me updates about doing business, entity formation, legal entity compliance, accounting, back office services, PEO and/or for marketing purposes.

What to expect: If you wish to withdraw your consent and stop hearing from us, please simply click the unsubscribe link at the bottom of any email that we send or contact us at [email protected]. We value and respect your personal data and will do the utmost to protect it. By submitting this form, you agree that we may process and use your information in accordance with the stated terms and conditions in our privacy policy.

Pin It on Pinterest

Share This

Share This

Share this post with a friend or colleague!