Accounting and accounting rules in Mexico

Accounting Rules

Tax Year

The fiscal year begins on 1 January and ends on 31 December of the same year.

Accounting Standards

Accounting standards are set by regulatory bodies, such as the Mexican Council for Research and Development of Financial Information Standards. 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.

Accounting Regulation Bodies

Mexican Council for Research and Development of Financial Information Standards

Accounting Reports

There are two essential structures:

- The balance sheet, which reflects the financial situation of the enterprise and provides information about the assets, liabilities and capital on a particular date (the last day of the fiscal year).

- The profit and losses report, reflects the income, expenses, loss and profit obtained during that particular period (typically each trimester or fiscal year).

Publication Requirements

The balance sheet, the profit and loss account statements and the daily ledger are mandatory components. All accounts are published annually.
Corporations with gross income exceeding MXN 100 million, assets exceeding MXN 79 million or with at least 300 employees (in every month during the tax year) may file with the tax authorities a special report (dictamen fiscal) prepared by an independent public accountant. If the report is filed, the tax authorities will not audit on general principles, but instead review to verify that the audit was properly carried out.

Professional Accountancy Bodies

Mexican Institute of Public Accountants

Certification and Auditing

Companies must seek a statutory auditor to conduct an annual audit of the financial health of their organisation. Examples of external auditors include: Deloitte, PricewaterhouseCoopers.

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