The Mexican government announced that it will require Mexican companies whose shares are traded on the Mexican stock exchange (bolsa de valores) to adopt International Financial Reporting Standards (IFRS) over the next four years, according to SentidoComun.com report.  Canada, Chile, and Brazil, have also recently announced their intent to adopt IFRS standards for publicly-traded companies in their jurisdictions. 

The governments of France, Spain, and the United Kingdom currently require that publicly-traded companies adopt IFRS.  The U.S. recognizes the validity of IFRS and permits foreign companies that are publicly-traded in the U.S. to use such standards without having to reconcile them with U.S. accounting standards.

The adoption of IFRS in Mexico should provide greater transparency and clarity for foreign and local investors in Mexican publicly-traded companies.  Hopefully it also leads to increased liquidity in the relatively illiquid Mexican securities markets.