ABSTRACT
In Mexico, no Federal or State law governs the choice of accounting principles in financial statements prepared other than for Federal income tax purposes. The Ley General de Sociedades Mercantiles, the Mexican Companies Law that dates from 1934, requires all companies to publish annual balance sheets in a Federal journal of record, depending on where the company is domiciled. The incidence of independent audits of Mexican companies increased notably as a result of the Government decree giving official recognition to the auditor's opinion on financial statements appended to tax returns. The Mexican Institute does not have a Director of Research or any technical staff available for accounting studies. A full-time Executive Director, who is a contador pblico, administers the Institutes affairs and coordinates activities between the Institute and the colegios. A recent development was the appointment of a joint committee by the Mexican Institute and the Mexico City colegio on relations with the Mexico City Stock Exchange and credit institutions.
