The Philippine Securities and Exchange Commission (SEC) has mandated publicly listed companies (PLCs) and other public interest entities to disclose fees paid to external auditors, aiming to enhance transparency. The directive, outlined in Memorandum Circular No. 18, aligns with the Code of Ethics for Professional Accountants adopted in the Philippines.
The guidelines apply to annual financial statements (AFS) for periods ending Dec. 31, 2024, onwards. Covered entities include PLCs, issuers of registered securities under the Securities Regulation Code, public companies with at least PHP50m (USD852,000) in assets and 200 shareholders, and firms filing financial statements for public market instruments or holding secondary licences. Entities must present two-year comparative data on fees paid to external auditors for financial statement audits and related services.