Yes, Mexico requires the use of IFRS (International Financial Reporting Standards) for the consolidated financial statements of all companies listed on the Mexican Stock Exchange (BMV). Furthermore, starting with reporting for the 2025 fiscal year, Mexico mandates that these issuers adopt IFRS Sustainability Disclosure Standards (S1 and S2).
This reform positions Mexico as the first country in North America to mandate the International Sustainability Standards Board (ISSB) disclosure standards developed under the International Financial Reporting Standards (IFRS) Foundation, specifically IFRS S1 and IFRS S2, signaling a decisive shift toward globally ...
Accounting System
Mexican companies are required to prepare their financial statements in Spanish and according to Mexican Financial Information Standards (NIF, formerly known as Generally Accepted Accounting Principles or PCGA). Accounting registries and books of account must be recorded in Spanish.
IFRS Standards are required or permitted in 169 jurisdictions across the world, including major countries and territories such as Australia, Brazil, Canada, Chile, the European Union, GCC countries, Hong Kong, India, Israel, Malaysia, Pakistan, Philippines, Russia, Singapore, South Africa, South Korea, Taiwan, and ...
GAAP is used primarily in the United States, while IFRS is adopted by over 195 countries and territories worldwide. Key differences include inventory valuation (LIFO vs FIFO), asset revaluation, and revenue recognition approaches.
The difficulty of Dip IFRS depends on your accounting background, study habits, and access to the right support. It's a professional challenge—but not an impossible one.
Mexico's business activities are strongly influenced by U.S. investment and trade. For Mexican companies, it would be more important to follow U.S. GAAP than IFRS to be able to access the U.S. capital market. U.S. GAAP is considered to be better suited for the U.S. capital market environment than IFRS.
Mexican GAAP means generally accepted accounting principles as in effect from time to time in Mexico and, subject to changes in such principles from time to time, consistently applied in accordance with the past practices of a Person.
Alternatively, these taxpayers can elect to have their financial statements audited by a contador público (a “CP” is the Mexican equivalent of a CPA), who files the audited financial statements with the SAT.
The Canadian Accounting Standards Board (AcSB) requires publicly accountable enterprises to use IFRS in the preparation of all interim and annual financial statements. Most private companies also have the option to adopt IFRS for financial statement preparation.
“If we adopt IFRS universally, most companies would follow the same standard,” Koo says. “This widespread influence would be so huge in that case that it might cause conflict or tension about the standard-setting process. Having Independent processes can allow countries to have some autonomy, which can be beneficial.”
US GAAP and IFRS also differ with respect to the amount of the liability that is recognized. IFRS generally uses the expected value in its measurement of the amount of the liability recognized, while the amount under US GAAP depends on the distribution of potential outcomes.
The U.S., China, Egypt, Bolivia, Guinea-Bissau, Macao and Niger don't allow their domestic publicly traded companies to use International Financial Reporting Standards.
The Tax Administration Service (Spanish: Servicio de Administración Tributaria, SAT) is the revenue service of the Mexican federal government.
Yes, you can live comfortably in many parts of Mexico on $3,000 a month, covering housing, food, healthcare, and entertainment, especially in colonial towns like Mérida or San Miguel de Allende, or smaller cities; however, it might be tight in expensive areas like parts of Mexico City or the Riviera Maya, and a modest lifestyle is key in most places, with a higher budget potentially needed for luxury or specific high-cost locations.
Mexican companies are required to prepare their financial statements in Spanish and according to Mexican Financial Information Standards (NIF, formerly known as Generally Accepted Accounting Principles or PCGA). Accounting registries and books of account must be recorded in Spanish.
The Professional Mutual Recognition Agreement signed by the U.S., Mexico, and Canada is a tripartite agreement that provides reciprocity for accountants among all three countries.
When will the changes come into effect? The FRC has decided to apply the new regime for financial years beginning on or after 1 January 2015, which will require 2014 comparatives to be restated. What is FRS 102? FRS 102 will replace almost all current UK accounting standards from 2015.
Mexican banks prepare their financial statements in accordance with Mexican Banking GAAP as prescribed by the CNBV.
IFRS 18 replaces IAS 1 and responds to investors' demand for better information about companies' financial performance. New requirements include: new categories and subtotals in the statement of profit or loss, disclosure of MPMs and enhanced requirements for grouping information.
The four pillars of IFRS S1 and S2 are governance, strategy, risk management and metrics and targets.
2021 FAR Changes
The FAR section of the CPA Exam saw the elimination of the International Accounting Standards Board (IASB) framework and the IFRS versus U.S. GAAP content area.