Mexico Under NAFTA: Accounting Information In a Changing Economy

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Mexico Under NAFTA: Accounting Information In a Changing Economy

Journal Title: Fórum Empresarial - Year 1998, Vol 3, Issue 1

Abstract

Mexico has successfully implemented policies to open foreign trade, stabilize the Peso, control inflation, deregulate private business, scale back State enterprises, eliminate bureaucratic red tape, and welcome foreign investment. This process Started before FTA was considered; however, NAFTA helped making these economic changes more permanent. Given a more propitious business environment, understanding the financial information reported by Mexican firms constitutes a relevant inquiry. This paper analyzes features of the accounting model used in chat economy and compares them against the characteristics of its counterpart accounting practice in the U.S. As a whole, the Mexican accounting practice has achieved reasonably good level of competence. In their quest to find solutions to problems and issues not yet covered by their accounting norms, the Mexican Accounting Principles Committee has paid close attention to the UCS, and to the principles advanced by the International Accounting Standards Committee. A new Law of the Securities Market has added mechanisms to guarantee a healthy operation of the securities market and to increase the transparency of transactions and financial disclosures Of the companies whose securities are traded in the exchanges. All this a reflection of the new open economy and free market mechanisms embraced by the Mexican government.

Authors and Affiliations

Juan M. Rivera

Keywords

EP ID EP753212
DOI https://doi.org/10.33801/fe.v3i1.2828
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