The carrying value of intangible assets in Mexico

The carrying value of intangible assets is of great importance in determining the taxable income of related companies located in countries with different tax burden and who exchange goods and services. The aim of this paper is the study of Mexican accounting and legal regulations relating to the valuation of intangible assets. Therefore, the first section contains the description of intangible assets in accordance with international guidelines of the Organization for Economic Cooperation and Development (OECD). In the next two sections normative theory that emits Research Center for Development of Financial Reporting Standards (CINIF), and the Law of Industrial Property is analyzed. Subsequently, the paper presents a review of the administrative rules on protection of the intellectual property. Finally, some theoretical definitions of experts are identified and it leads to the conclusion that the regulation is insufficient and still exits big difficulties in determining a transfer price at market value on such assets.