For professional assistance & information on legal & business matters regarding Mexico and Latin America, please contact:
ATTORNEYS AT LAW
Please contact us at our Mexico offices located at:
Apartado Postal No. 9
San Miguel de Allende, Guanajuato, Mexico
TEL. US.: (800) 856-5709
Local Phone (415) 152-3648
|OUR MEXICO CITY OFFICES
Montecito no. 38 Piso 37 Oficina 37
Edificio World Trade Center
Colonia Napolis C.P. 03810
Mexico, Distrito Federal
For Fiscal issues in Mexico see FISCAL elsewhere on this site.
Accounting. The business in Mexico (most likely an incorporated entity) is to maintain a General Journal, a General Ledger, a Retained Earnings Register, Foreign Currency Register (for "Maquilas" ), Imports and Exports Control Program (required for "Maquilas" recommended for all).
Corporate. Companies are to maintain a Shareholders' Minutes Book of its meetings (ordinary, extraordinary and special meetings), Shareholders Registry of Registered Shareholders (whereby the company officially recognizes who the shareholders are, what there domiciles are for notices and how much stock they have), Registry of Corporate Capital and its Increases and Decreases, Registry of Stock Purchases.
For the "Maquiladora" there are several on going reports to be provided to federal Mexican government agencies, to provide evidence that they are complying with their approved program.
For normal business corporate entities (in which maquilas are included), they are to prepare the following annual reports:(these report are to used in the annual shareholders' meeting that will approve/disapprove the annual operation):
The Administrator's Annual Report on the Company's Operation during the fiscal year (January 1 through December 31, as required by mandate) ; an Annual Report identifying the Principal Accounting Policies and Procedures used in the financial statements; a Balance Statement; A Statement of Earnings; a Report on Changes in the shareholders Equity, and a Report on Changes in the Financial Position (and the notes prepared to understand the financial information). These reports should be provided to the shareholders a few days (if not weeks) prior to the annual shareholders' meeting, so that the shareholders can determine whether to approve the administration for the prior year.
Tax Report. When the entity surpasses a certain sum of income, the federal Mexican taxation authority (Hacienda) requires that the business present an audited (by a public accountant registered as an auditor) tax statement. This is optional for lesser earners. However, if it is done, then the taxation authority will not audit on general principals but rather it will review the audit to verify it was done properly. If done properly then all is done.
Accounting Principles and Practices
There is an Accounting Principals Commission of the Mexican Institute of Public Accountants. It issues statement of generally accepted accounting principles and practices, which are similar to those of the U.S.
One main difference in the Mexican system vs. the U.S. system is the inflation issue. The companies are to maintain records of the effects of inflation on the accounting records and those financial reports that have been prepared by the company.
The accounts that are to be adjusted to show the effects of inflation are: Fixed assets; Inventories, Net Earnings (cost of sales, depreciation, monetary gains or losses); and Shareholders Equity (in capital stock and retained earnings, and effect of holding non-monetary assets).
Auditing Standards. In Mexico they are very similar to those in the U.S. and are determined by the Auditing Standards and Procedures Commission of the Mexican Institute of Public Accountants.
Contact in Mexico for Auditor, Accounting Fiscal matters and Tax Planner:
Sergio Santinelli, Santinelli & Asociados, S.C.