The fact that mandatory sustainability reporting is now being considered suggests how far Mexican regulation has come in recent years.
In most respects, Mexico’s financial reporting is not very different from most countries.
Mexico has its own financial reporting standards but public companies are now obliged to make their reports according to the International Financial Reporting Standards (IFRS), according to Alvarez.
"I don't think there are really any significant issues or problems different from any other country,” says Francisco Alvarez, the Ernst & Young (Mancera SC) Assurance Leader in Mexico.
The commitment to IFRS is deep-seated, he says.
"Local financial regulators are serious people working very hard towards making the Mexican information of the different public companies comparable worldwide. That is why they're pushing strongly for IFRS and they are working hard to make sure that everybody is adopting the same rules. I think it is a process for their people that you can talk to and finally you can work with to meet a common goal."
Although little is changing with respect to conventional financial reporting, more reports may soon be required. As with a number of other countries, a mandate for sustainability reporting seems likely in the near future.
"Currently we have no regulations regarding sustainability. However, the Mexican stock exchange is now producing a sustainability index based on the reports issued by the largest issuers in the country. I think that we were moving towards a green accounting system in the future that will require more and more of this type of regulation,” Alvarez says.
The fact that mandatory sustainability reporting is now being considered suggests how far Mexican regulation has come in recent years.
“Mexico has come way ahead of the old days in which the market was very difficult to penetrate. I think it's open, I think it's easy to get registered, I think it's easy to trade, and I would encourage most companies to come and try our markets,” Alvarez says.
The regulatory clarity also makes debt and equity offerings relatively easy to organize – a serious job, but comparable to any advanced market.
“I would encourage a lot more companies to come and try the different options available in the Mexican market, such as debt offerings or stock offerings. It's open and it's available,” Alvarez says.
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