Financial Information on the States of Mexico and Inflation a Reference to the Case of Baja California Sur
Dr. Ma. Enriqueta Mancilla Rendón, Dr. Marcela Astudillo Moya

Abstract
The international government accounting system has required Mexico’s federal government to change the way it presents accountability information. Government accounting standards impose the obligation to recognize the effects of inflation on financial information. The purpose of this study is to assess the efficacy of preparing financial information on the accounting basis of accumulation or accrual, in financial statements presented in currencies of legal tender within inflationary contexts that entail a significant loss of purchasing power of that currency. This paper studies the accounting records presented by the government of Baja California Sur, and finds that the financial and budget information provided by agencies of the centralized state government and state-owned enterprises do not conform to international and national financial reporting standards regarding the recognition of inflation in those financial statements.

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