New accounting pronouncements NIF 2024

Compliance with Financial Reporting Standards (NIF by its acronym in Spanish) creates important benefits for organizations in Mexico, since regulations provide the necessary tools to different users for making decisions on investment, financing, and development issues. In addition, they allow establishing efficient internal controls for the organization and set the starting point for determining the tax obligations of taxpayers.

As part of the update process, the Mexican Financial Reporting Standards Council (CINIF by its acronym in Spanish) issued the document Improvements to Financial Reporting Standards (NIF) 2024. The new accounting pronouncements apply for periods beginning on or after January 1, 2024, and aim to improve certain aspects of the NIF, seeking to achieve convergence with the International Financial Reporting Standards (NIIF by its acronym in Spanish); however, in other cases, changes in the NIF have as priority solving local issues even when convergence with international accounting regulations is not achieved.

The Improvements to the NIF 2024 are classified into two sections:

Section I. Modifications to the NIF that, in accordance with NIF B-1 Accounting Changes and Correction of Errors, generate accounting changes in the valuation, submission, or disclosure in the financial statements of the entities; and
Section II. Modifications to the NIF to make specific clarifications with the objective of establishing a clearer and more understandable regulatory approach and, therefore, do not generate accounting changes in the financial statements.

Financial reports (balance sheets, income statements, financial notes, and disclosures) are the language for communicating information about a company's financial condition. Therefore, each entity must provide high-quality financial information to the market to allow local and foreign investors to make better decisions. The inadequate use of NIF may cause capital markets to function less efficiently, raising costs for all participants and sectors of the economy, and generating problems related to the compliance with tax obligations.

The following publication provides an overview of the new accounting pronouncements which apply for fiscal year 2024. In addition, our team has significant experience advising a wide range of clients (including public and private companies) about ongoing compliance with the NIF that allows us to be your great ally to identify and evaluate the impact of new standards and upcoming accounting pronouncements.

Download the document “New accounting pronouncements NIF 2024” for more information.