Mexico

The financial reporting framework in Mexico is established through a combination of company law, securities regulation, sector-specific regulation, and professional standards. The General Law of Commercial Companies (Ley General de Sociedades Mercantiles) of 1934 sets out broad requirements regarding the financial information to be presented to shareholders, while more detailed accounting requirements are established by other authorized bodies. The World Bank’s Report on the Observance of Standards and Codes notes that the law provides only general rules, with more detailed requirements established through securities and financial sector regulation.

Companies whose securities are publicly traded, other than financial institutions and insurance companies, are required to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) Accounting Standards. IFRS Accounting Standards are incorporated by reference through regulations issued by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) under the Securities Market Law (Ley del Mercado de Valores) and apply to listed companies outside the financial and insurance sectors. The IFRS Foundation jurisdictional profile confirms that listed companies are required to apply IFRS Accounting Standards as issued by the International Accounting Standards Board.

Financial institutions and insurance companies are subject to sector-specific accounting requirements established by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) and the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas (CNSF)), respectively. These entities apply Mexican Financial Reporting Standards (MFRS) issued by the Mexican Board for Research and Development of Financial Reporting Standards (Consejo Mexicano de Normas de Información Financiera (CINIF)), together with additional regulatory requirements issued by their respective supervisors. CINIF was established in 2001 as an independent nonprofit organization and has issued MFRS since 2004 with the objective of convergence with IFRS Accounting Standards.

The Political Constitution of the United Mexican States (Constitución Política de los Estados Unidos Mexicanos), specifically Article 5, grants legal authority to local professional accountancy organizations and their federal umbrella, the Instituto Mexicano de Contadores Públicos (IMCP), to establish professional standards for their members. In practice, IMCP has delegated accounting standard-setting responsibilities to CINIF.

Statutory audits are required for listed companies and for entities operating in regulated sectors, including banks, financial institutions, and insurance companies. In addition, under Mexican tax legislation, certain companies exceeding prescribed revenue thresholds are also subject to statutory audit requirements. These audits must be conducted by an independent public accountant registered with the tax authorities.

With respect to auditing standards, the Instituto Mexicano de Contadores Públicos (IMCP) has adopted International Standards on Auditing (ISA) without modification for all mandatory audits, effective from January 2012. The National Banking and Securities Commission and the National Insurance and Surety Commission accept these standards for entities under their supervision. Accordingly, audits of listed companies, financial institutions, and insurance companies are conducted in accordance with ISA.

Only auditors holding the IMCP’s Contador Público Certificado designation are permitted to audit public interest entities regulated by the CNBV and CNSF. As such, the audit framework in Mexico operates under a shared regulatory model involving sector regulators, tax authorities, and the profession.

The main requirement to practice accountancy in Mexico is the completion of a bachelor’s degree in accounting from a recognized higher education institution. Universities are responsible for establishing the curriculum for accounting degree programs, while the Ministry of Public Education (Secretaría de Educación Pública) is responsible for issuing the professional license required to practice public accountancy. Several universities also require students to complete a final examination upon completion of their academic program. This examination is administered by the National Center for the Evaluation of Higher Education (Centro Nacional de Evaluación para la Educación Superior (CENEVAL)), and the examination content is reported by the Instituto Mexicano de Contadores Públicos (IMCP) to be aligned with the International Education Standards (IES).

Professional accountants may voluntarily join a state-level professional accountancy organization, which is authorized to regulate its members in accordance with the Political Constitution of the United Mexican States (Constitución Política de los Estados Unidos Mexicanos). Several professional accountancy organizations operate in Mexico on a voluntary membership basis; however, apart from the Instituto Mexicano de Contadores Públicos, there is limited publicly available information on whether other organizations have established formal membership requirements or regulatory functions.

The Instituto Mexicano de Contadores Públicos (IMCP) is the principal professional accountancy organization in the jurisdiction and is a federation composed of 60 state-level professional associations representing accountants across the country. Membership is voluntary, and the professional license issued by the Ministry of Public Education is the primary requirement for admission. Through IMCP and its affiliated state-level organizations, the profession is self-regulated for members. Its regulatory responsibilities include establishing auditing standards, setting ethical requirements, prescribing and monitoring continuing professional development requirements, operating an investigative and disciplinary system, and establishing and maintaining a quality assurance review system.

The Instituto Mexicano de Contadores Públicos also administers the Contador Público Certificado qualification, which it reports to be aligned with the 2019 International Education Standards. This certification is mandatory for auditors of entities regulated by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) and the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas (CNSF)), which together supervise the principal public interest entities in Mexico.

Auditors providing services to entities under the supervision of the CNBV and CNSF are additionally subject to the ethical and independence requirements established by those regulators, as well as supplementary investigative and disciplinary procedures. Both regulators have the legal authority to impose administrative sanctions, including reprimand, suspension, or removal from the register of approved auditors, for non-compliance with applicable accounting, auditing, and reporting requirements.

Professional accountants intending to perform audits for tax purposes must also register with the Federal General Administration of Tax Audit (Administración General de Auditoría Fiscal Federal), which operates under Mexico’s tax authority, the Tax Administration Service (Servicio de Administración Tributaria). Practitioners affiliated with a state-level professional accountancy organization may be included in the list of qualified tax auditors maintained by the tax authorities. The tax authority has the power to impose civil and criminal penalties on auditors who certify misleading or inaccurate tax information and may suspend or remove auditors from the approved register where warranted.

There is no independent public audit oversight authority in Mexico. Oversight of auditors is carried out through a shared regulatory framework involving sector regulators and the profession.

Auditors providing services to entities regulated by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) and the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas (CNSF)), which together supervise the principal public interest entities in Mexico, are subject to the oversight and enforcement powers of those regulators. Both the CNBV and CNSF have legal authority to impose administrative sanctions on auditors for non-compliance with applicable accounting, auditing, and reporting requirements. Such sanctions may include monetary penalties, admonishment, reprimand, suspension, or dismissal from the register of approved auditors. In cases involving suspected fraud, the regulators may initiate judicial proceedings for criminal action.

In order to conduct audits for entities under the supervision of the CNBV and CNSF, individuals must hold the Contador Público Certificado certification issued by the Instituto Mexicano de Contadores Públicos (IMCP). As certified members of IMCP, these individuals are also subject to the professional, ethical, quality assurance, and investigative and disciplinary requirements established by the IMCP and its affiliated state-level professional organizations, as described in the Regulation of the Accountancy Profession section.

Accordingly, audit oversight in Mexico operates through a combination of sector-based regulatory oversight and professional self-regulation, rather than through an independent public oversight authority.

The Instituto Mexicano de Contadores Públicos (IMCP)

The Instituto Mexicano de Contadores Públicos (IMCP) is the principal professional accountancy organization and IFAC member organization in Mexico. Established in 1923, the IMCP is an umbrella federation composed of 60 state-level professional associations that bring together professional accountants from across the country. Membership in the IMCP is voluntary and includes both certified and non-certified members.

Certified members are those who have obtained the IMCP’s Contador Público Certificado certification. Only members holding this certification are authorized to perform audits of public interest entities regulated by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) and the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas (CNSF)).

The IMCP, together with its affiliated state-level professional organizations, carries out key regulatory functions for its members. These include setting auditing standards, establishing ethical requirements, prescribing and monitoring continuing professional development requirements, operating an investigative and disciplinary system, and establishing and maintaining a quality assurance review system.

In addition to being a member of IFAC, the IMCP is also a member of the Inter-American Accounting Association (Asociación Interamericana de Contabilidad).

Other Professional Accountancy Organizations

Other professional accountancy organizations have been established in Mexico in recent years, including associations formed following institutional separation from the IMCP. However, there is limited publicly available information regarding their membership composition, governance structures, and regulatory activities.

There is no legal foundation for establishing and implementing a quality assurance review system for all mandatory audits of financial statements in Mexico. The Securities Market Law (Ley del Mercado de Valores) requires listed entities to appoint an independent external auditor who meets the quality control requirements established by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)). In addition, the CNBV has issued general provisions applicable to supervised entities and issuers that contract external audit services. However, a comprehensive statutory quality assurance review system for all mandatory audits has not been established at the jurisdiction level.

In the absence of a jurisdiction-wide legal framework, the Instituto Mexicano de Contadores Públicos (IMCP) has established and operates a mandatory quality review system for its members and member firms performing audits, reviews, and other assurance and related services. The IMCP originally issued a quality control standard converged with International Standard on Quality Control 1 and subsequently moved to the quality management standards. In January 2021, the IMCP announced the adoption of International Standard on Quality Management 1 (ISQM 1) and International Standard on Quality Management 2 (ISQM 2), effective 15 December 2022. The IMCP’s Norma de Revisión de Gestión de la Calidad now forms the basis of its review framework and entered into force on 1 January 2024, replacing the earlier review standard.

Current IMCP materials indicate that firms and independent professionals within the scope of the review standard are required to submit annual confirmations through the IMCP system demonstrating that they have implemented a quality management system in accordance with the applicable standards. The IMCP also maintains a dedicated review platform and related implementation resources.

Only members of the IMCP holding the Contador Público Certificado certification, together with eligible member firms, may perform audits of entities regulated by the National Banking and Securities Commission and the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas (CNSF)), which together represent the principal public interest entities in Mexico. The CNSF framework also requires registered external auditors of insurance institutions to hold current certification issued by a professional body recognized by the Ministry of Public Education (Secretaría de Educación Pública). Accordingly, a quality assurance review system is operational for an important segment of mandatory audits, particularly those carried out by IMCP-regulated professionals and firms, but not for all mandatory audits in the jurisdiction.

Current Status: Partially Adopted

Entry requirements for the accountancy profession in Mexico are established through the Political Constitution of the United Mexican States (Constitución Política de los Estados Unidos Mexicanos), the Law Regulating Article 5 of the Constitution, Relative to the Practice of Professions in Mexico City (Ley Reglamentaria del Artículo 5o. Constitucional, relativo al ejercicio de las profesiones en la Ciudad de México), and the higher education system. To practice public accountancy, individuals are generally required to obtain a professional degree in accounting and a professional license issued by the General Directorate of Professions (Dirección General de Profesiones) of the Ministry of Public Education (Secretaría de Educación Pública). Higher education institutions are responsible for academic programs and the issuance of professional degrees in accordance with applicable law.

Professional accountants may voluntarily join a state-level professional accountancy organization. Apart from the Instituto Mexicano de Contadores Públicos (IMCP), there is limited publicly available information on whether other professional accountancy organizations have established formal continuing professional development requirements for their members.

For IMCP members, the Institute has established continuing professional development requirements through its Norma de Desarrollo Profesional Continuo, including updated regulations effective January 1, 2026. The IMCP also operates a professional certification system. Under its current Regulation for the Professional Certification of Public Accountants, candidates for certification must hold a professional license issued by the General Directorate of Professions, demonstrate at least three years of professional practice related to public accountancy, and pass the Uniform Certification Examination.

The IMCP’s Contador Público Certificado certification is required for auditors of entities regulated by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) and the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas), which supervise the principal public interest entities in Mexico. The IMCP also continues to coordinate with academic institutions and education authorities on matters relating to professional formation and certification.

Accordingly, continuing professional development and certification requirements are established for IMCP members and certified accountants, but the latest International Education Standards are not demonstrably adopted for all aspiring and professional accountants in the jurisdiction.

Current Status: Partially Adopted

Auditing standards in Mexico are established through a shared framework involving professional standard-setting and sector-specific regulatory requirements. The Instituto Mexicano de Contadores Públicos (IMCP) maintains an official Normas de Auditoría section on its website, which includes the Normas Internacionales de Auditoría, confirming that International Standards on Auditing (ISA) form part of the applicable auditing framework for its members and certified auditors. The IMCP approved the adoption of ISA effective for audits of financial statements for periods beginning on or after January 1, 2012.

The National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas (CNSF)) expressly requires that audits of regulated insurance entities be performed in accordance with the Normas Internacionales de Auditoría, and its regulatory framework refers to International Standard on Auditing 220, or the standard replacing it, in relation to engagement quality management. Similarly, audits of listed entities and financial institutions supervised by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) are conducted within a framework based on international auditing standards.

Only auditors holding the Contador Público Certificado certification issued by the Instituto Mexicano de Contadores Públicos (IMCP) may perform audits of entities regulated by the CNBV and CNSF, which together represent the principal public interest entities in Mexico. Accordingly, ISA are applied in all mandatory audits of public interest entities and other regulated entities.

The latest 2025 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements issued by the International Auditing and Assurance Standards Board is currently the authoritative international benchmark. While ISA are adopted and applied in the jurisdiction, it has not been possible to verify from publicly available legislation, regulator publications, or the IMCP website that the full 2025 Handbook, including the most recent updates and amendments, has been formally incorporated and made effective in Mexico.

Accordingly, the jurisdiction is assessed as Partially Adopted pending confirmation that the latest 2025 Handbook is fully adopted and effective for all mandatory audits.

Current Status: Partially Adopted

Professional accountants in Mexico are eligible to practice with a university degree in accounting and a professional license issued by the Ministry of Public Education (Secretaría de Educación Pública). Ethical requirements are not established by the Ministry for all professional accountants at the jurisdiction level. Individual professionals may voluntarily join a state-level professional accountancy organization and become subject to that organization’s ethical requirements.

The Instituto Mexicano de Contadores Públicos (IMCP) is the principal professional accountancy organization in the jurisdiction and requires its members to comply with its Código de Ética Profesional. The IMCP currently maintains the 2024 edition of its Code of Ethics and has issued subsequent updates in 2025 to incorporate changes introduced by the International Ethics Standards Board for Accountants (IESBA).

The IMCP states that the amendments introduced in 2025 are intended to maintain alignment with the International Code of Ethics for Professional Accountants (including International Independence Standards). However, based on publicly available information, it has not been possible to confirm that the 2025 Handbook has been adopted in its entirety for all professional accountants in the jurisdiction.

In addition, members of the IMCP who perform audits of companies regulated by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) and the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas (CNSF)) are subject to additional independence and ethical requirements established by those regulators for audits of public interest entities.

Several other professional accountancy organizations exist in Mexico with voluntary membership; however, apart from the IMCP, there is limited publicly available information regarding the ethical requirements applicable to their members.

Accordingly, an earlier version of the Code, together with subsequent amendments, is applied for a segment of the profession, and the jurisdiction is assessed as Partially Adopted.

Current Status: Partially Adopted

The General Law on Government Accounting (Ley General de Contabilidad Gubernamental) of 2008 established the National Council for Accounting Harmonization (Consejo Nacional de Armonización Contable (CONAC)) as the body responsible for issuing accounting standards and guidelines applicable to public sector entities in Mexico. CONAC is responsible for issuing the accounting rules and financial reporting requirements to be applied by public entities at the federal, state, and municipal levels.

Mexico applies national public sector accounting standards issued by CONAC. These standards are based on a harmonized national framework and incorporate concepts with reference to the International Public Sector Accounting Standards (IPSAS). The IFAC and CIPFA International Public Sector Financial Accountability Index identifies Mexico as a jurisdiction that uses IPSAS as a reference point rather than directly adopting IPSAS.

The national standards are applied on a partial accrual basis, rather than full accrual-basis IPSAS for all public sector entities. Academic and public finance sources indicate that the framework is designed to be compatible with IPSAS principles and to strengthen harmonization of financial reporting across levels of government; however, IPSAS have not been adopted in their entirety.

State-owned enterprises and certain public entities prepare financial statements on an accrual basis in accordance with the applicable governmental accounting standards. In addition, CONAC has authorized the use of Mexican Financial Reporting Standards and IPSAS as supplementary reference standards for certain entities where appropriate.

Accordingly, Mexico is assessed as Partially Adopted, as national standards with reference to IPSAS are in place, but accrual-basis IPSAS in their entirety have not been adopted for application by all public sector entities.

Current Status: Partially Adopted

Professional accountants in Mexico may practice with a university degree in accounting and a professional license issued by the Ministry of Public Education (Secretaría de Educación Pública) and are not subject to a jurisdiction-wide formal investigative and disciplinary (I&D) system established by law for all professional accountants. Individuals who voluntarily join a state-level professional accountancy organization become subject to the rules and disciplinary processes established by that organization, where applicable.

The Instituto Mexicano de Contadores Públicos (IMCP) is the principal professional accountancy organization in the jurisdiction and operates an investigative and disciplinary system for its members through its governance framework and affiliated state-level organizations. The system is administered through the National Honor Board (Junta de Honor Nacional) and the corresponding local Honor Committees of its 60 affiliated professional associations. The IMCP’s bylaws and ethical framework establish the procedures for complaints, investigation, disciplinary measures, and appeals. (imcp.org.mx)

Members of the IMCP who perform audits of entities regulated by the National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) and the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas (CNSF)) are subject to additional investigative and disciplinary procedures imposed by those regulators. Both the CNBV and CNSF have legal authority to impose administrative sanctions for violations of applicable accounting, auditing, and reporting requirements. Such sanctions may include monetary penalties, admonishment, reprimand, suspension, or removal from the register of approved auditors. In cases involving suspected fraud, the regulators may initiate judicial proceedings for criminal action.

In addition, auditors registered for tax purposes are subject to enforcement measures by the Tax Administration Service (Servicio de Administración Tributaria), which may impose civil and criminal penalties and suspend or remove auditors from the approved register where misleading or inaccurate tax certifications are identified.

Several other professional accountancy organizations operate in Mexico on a voluntary basis; however, apart from the IMCP, there is limited publicly available information regarding whether formal investigative and disciplinary systems have been established for their members.

Accordingly, an investigative and disciplinary system is operational for IMCP members and regulated auditors, but not for all professional accountants in the jurisdiction. The jurisdiction is therefore assessed as Partially Adopted.

Current Status: Partially Adopted

The financial reporting framework in Mexico is established through company law, securities regulation, sector-specific regulation, and national standard-setting arrangements. The General Law of Commercial Companies (Ley General de Sociedades Mercantiles) sets out broad requirements regarding the financial information to be presented to shareholders, while more detailed accounting requirements are established by sector regulators and the national accounting standard-setter.

According to the IFRS Foundation’s jurisdictional profile for Mexico, International Financial Reporting Standards (IFRS) Accounting Standards are required for all domestic companies whose securities trade in a public market, except for financial institutions and insurance companies. The National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores (CNBV)) adopted IFRS Accounting Standards for listed companies, other than financial institutions and insurance companies, effective for annual reporting periods beginning on or after January 1, 2012. The standards are incorporated by reference and are applied as issued by the International Accounting Standards Board without modification.

Financial institutions and insurance companies apply Mexican Financial Reporting Standards (MFRS) together with additional accounting criteria established by the CNBV and the National Insurance and Surety Commission (Comisión Nacional de Seguros y Fianzas (CNSF)). Accordingly, IFRS Accounting Standards are not required for all domestic publicly accountable entities in the jurisdiction.

The Mexican Board for Research and Development of Financial Reporting Standards (Consejo Mexicano de Normas de Información Financiera (CINIF)) is the national accounting standard-setter in Mexico. CINIF issues Mexican Financial Reporting Standards and continues to develop national standards with convergence to IFRS Accounting Standards as an ongoing objective. Current CINIF materials indicate that this convergence process remains active and includes ongoing amendments aligned with recent IFRS developments.

The IFRS for Small and Medium-sized Entities Accounting Standard has not been adopted in Mexico. The IFRS Foundation jurisdictional profile states that CINIF does not consider the use of separate recognition and measurement criteria from full IFRS Accounting Standards to be appropriate for small and medium-sized entities and has instead pursued a reduced disclosure approach.

Accordingly, IFRS Accounting Standards in effect are required for listed companies but are not required for all domestic publicly accountable entities. Mexico is therefore assessed as Partially Adopted.

Current Status: Partially Adopted

Relevant Organizations

• Asociación Nacional de Facultades y Escuelas de Contaduría y Administración (ANFECA)
• Consejo Mexicano de Normas de Información Financiera (CINIF)
• Instituto Mexicano de Contadores Públicos (IMCP)
• National Banking and Securities Commission (CNBV)
• National Council of Accounting Harmonization (CONAC)
• National Insurance and Surety Commission (CNSF)
• National Commission for the Pension System (CONSAR)

Relevant Legislation

• CNBV Official Circular for Issuers, 2003
• General Law of Governmental Accounting, 2008.
• Law of the National Banking and Securities Commission (Ley de la Comisión Nacional Bancaria y de Valores)
• Securities Act

Relevant Publications

• Deloitte, Taxation and Investment in Mexico, 2016.
• IMCP, SMO Action Plan, 2022.
• IFRS Foundation, IFRS Application Around the World—Jurisdictional Profile: Mexico, June 2016.
• World Bank, Report on the Observance of Standards and Codes: Accounting and Auditing—Mexico, March 2004.