Antipolo City

2nd semester, AY 2023 -2024

Accounting Research 1
Assignment 1- Prelim

Article Title: Tax Reform Package 2 archives- Department of Finance

Brief Summary:
The Tax Reform for Acceleration and Inclusion (TRAIN) Law, also known as Tax Reform
Package 2, was implemented in the Philippines in 2018. This law aimed to simplify the
tax system, broaden the tax base, and reduce tax rates for both individuals and
corporations. However, the implementation of this law has raised several accounting
and financial implications that require further research. Here are five potential research
problems related to Tax Reform Package 2:

Potential Research Problem:

1. Impact of TRAIN Law on Corporate Financial Performance: This research
problem aims to analyze the financial performance of corporations before and
after the implementation of TRAIN Law. It will investigate how the reduction of
corporate income tax rates has affected financial ratios such as return on assets
(ROA), return on equity (ROE), and net profit margin. It will also examine how the
new tax incentives provided by TRAIN Law have affected the financial
performance of corporations operating in special economic zones and export
industries.

2. Effectiveness of TRAIN Law on Tax Compliance: This research problem aims to

evaluate the effectiveness of TRAIN Law in increasing tax compliance among
individuals and corporations. It will investigate whether the simplification of tax
exemptions and deductions has encouraged more taxpayers to file their tax
returns accurately and on time. It will also examine whether the implementation
of a value-added tax (VAT) on selected goods and services has led to an
increase in tax evasion or avoidance activities by businesses and consumers.

3. Impact of TRAIN Law on Income Inequality: This research problem aims to

analyze whether TRAIN Law has contributed to income inequality in the
Philippines by examining how different income groups have been affected by the
new tax rates and exemptions provided by TRAIN Law. It will also investigate
whether TRAIN Law has led to any unintended consequences, such as a
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2nd semester, AY 2023 -2024

Accounting Research 1
Assignment 1- Prelim

decrease in the quality of education, healthcare, and social services due to the
reduction of taxes on certain industries.

4. Effectiveness of TRAIN Law in Promoting Economic Growth: This research

problem aims to evaluate whether TRAIN Law has contributed to economic
growth in the Philippines by examining how the reduction of corporate income tax
rates has affected business investment, employment, and exports. It will also
investigate whether the new tax incentives provided by TRAIN Law have
attracted foreign direct investment (FDI) and promoted domestic
entrepreneurship.
5. Impact of TRAIN Law on Government Revenue and Expenditure: This research
problem aims to analyze whether TRAIN Law has generated the expected
revenue for the government and whether it has contributed to a reduction in the
budget deficit. It will also examine whether TRAIN Law has led to any unintended
consequences, such as an increase in the cost of living for low-income
households due to the increase in excise taxes on certain goods and services.

Source: https://www.dof.gov.ph/tag/tax-reform-package-2/

Article Title: “On the Verge of a Digital Banking Revolution in The Philippines”
Brief summary:
The rise of digital technology has disrupted various industries worldwide, including the
banking sector. In the Philippines, there has been growing interest in digital banking due
to its potential benefits such as convenience, cost savings, increased accessibility to
financial services for underserved communities, among others. However, this trend also
presents several accounting or financial implications that require further research.
Here's a potential research problem related to the digital banking revolution in the
Philippines.

Potential Research Problems:

 Antipolo City
2nd semester, AY 2023 -2024

Accounting Research 1
Assignment 1- Prelim

1. Impact of Digital Banking on Financial Inclusion: This research problem aims to

analyze whether the adoption of digital banking in the Philippines has contributed
to financial inclusion, particularly for low-income households who may not have
access to traditional banking services due to geographical or financial
constraints. The study will examine how digital banking has facilitated financial
transactions such as remittances, bill payments, savings deposits, loans
disbursements through digital channels such as mobile phones or online
platforms such as social media or e-commerce websites. The study will also
investigate the challenges and limitations of digital banking, such as the digital
divide, cybersecurity risks, and regulatory compliance issues.

2. Effectiveness of Digital Banking in Promoting Innovation and Competition: This

research problem aims to analyze whether the adoption of digital banking in the
Philippines has led to innovation and competition in the banking sector. The
study will examine how digital banking has disrupted the traditional banking
model, leading to the emergence of new players such as fintech’s, digital banks,
and neo banks. The study will also investigate how digital banking has affected
the business models and strategies of traditional banks, such as the need to
invest in digital infrastructure, partnerships with fintech’s, and the adoption of
open banking principles.

3. Impact of Digital Banking on Financial Stability: This research problem aims to

analyze whether the adoption of digital banking in the Philippines has contributed
to financial stability, particularly in terms of cybersecurity risks, data privacy
concerns, and regulatory compliance issues. The study will examine how digital
banking has affected the risk management strategies of banks, such as the need
to invest in cybersecurity technologies, data analytics tools, and regulatory
compliance frameworks. The study will also investigate how digital banking has
affected the regulatory landscape, such as the need to update the existing
banking laws and regulatory frameworks to adapt to the digital age.

4. Impact of Digital Banking on Financial Crime Prevention: This research problem

aims to analyze whether the adoption of digital banking in the Philippines has
contributed to financial crime prevention, particularly in terms of anti-money
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2nd semester, AY 2023 -2024

Accounting Research 1
Assignment 1- Prelim

laundering (AML) and counter-terrorism financing (CTF) measures. The study will
examine how digital banking has affected the AML/CTF compliance strategies of
banks, such as the need to invest in digital KYC (Know Your Customer) tools,
transaction monitoring systems, and sanctions screening technologies. The study
will also investigate how digital banking has affected the regulatory frameworks
for AML/CTF compliance, such as the need to update the existing AML/CTF laws
and regulatory frameworks to adapt to the digital age.

5. Impact of Digital Banking on Financial Reporting and Disclosure: This research

problem aims to analyze whether the adoption of digital banking in the
Philippines has affected the financial reporting and disclosure practices of banks,
particularly in terms of digital accounting, digital auditing, and digital financial
reporting. The study will examine how digital banking has affected the financial
reporting and disclosure requirements, such as the need to update the existing
financial reporting standards and regulatory frameworks to adapt to the digital
age. The study will also investigate how digital banking has affected the role of
auditors, such as the need to invest in digital audit tools, data analytics
technologies, and cybersecurity risk assessment frameworks.

Source: https://www.mckinsey.com/industries/financial-services/our-insights/on-the-
verge-of-a-digital-banking-revolution-in-the-philippines

Article Title: Corporate Governance Reforms under The Revised Corporation Code
Brief Summary:
the corporate governance reforms under The Revised Corporation Code is the impact of
the stricter disclosure requirements on financial reporting quality and transparency. The
new code requires companies to disclose more detailed information about their financial
and non-financial performance, governance structures, and risk management practices.
Researchers could examine whether these disclosure requirements lead to more
accurate and reliable financial reporting, as well as whether they enhance the
 Antipolo City
2nd semester, AY 2023 -2024

Accounting Research 1
Assignment 1- Prelim

transparency and reliability of financial information for investors and other stakeholders.
Additionally, researchers could investigate whether companies' compliance with these
disclosure requirements affects their financial performance, such as their earnings
management practices or their ability to secure financing.
Potential Research Problems:

1. Stricter disclosure requirements: The new code requires companies to

disclose more information about their financial and non-financial
performance as well as governance structures and risk management
practices.
Example research problem: How do these stricter disclosure
requirements affect companies' financial reporting quality and
transparency? Do companies disclose more accurate and reliable
information under the new code? How do investors and other
stakeholders respond to these disclosures?

2. More stringent director and officer qualifications: The new code requires
directors and officers to meet higher standards of competence,
independence, and integrity.
Example research problem: How do these more stringent director and
officer qualifications affect companies' governance practices and
decision-making processes? Do these qualifications lead to better
decision-making and more effective governance? How do companies
ensure compliance with these qualifications?

3. Increased shareholder rights: The new code grants shareholders more rights
to participate in corporate decision-making processes, such as the right to
call special meetings and propose resolutions.
Example research problem: How do these increased shareholder
rights affect companies' governance structures and decision-making
processes? Do these rights lead to more effective governance and
better outcomes for shareholders? How do companies manage
conflicts between shareholder rights and other stakeholder interests?
 Antipolo City
2nd semester, AY 2023 -2024

Accounting Research 1
Assignment 1- Prelim

4. Enhanced board oversight: The new code requires boards to be more

proactive in monitoring and managing risks and overseeing executive
compensation practices.
Example research problem: How do these enhanced board oversight
requirements affect companies' risk management practices and
executive compensation policies? Do these requirements lead to better
risk management and more effective executive compensation
practices? How do boards ensure compliance with these
requirements?

5. Improved transparency and accountability: The new code requires

companies to provide more detailed and comprehensive information about
their governance structures, risk management practices, and financial
performance.
Example research problem: How do these improved transparency and
accountability requirements affect companies' governance practices
and financial reporting processes? Do these requirements lead to more
transparent and accountable governance practices? How do
companies ensure compliance with these requirements?

Source: https://www.bworldonline.com/editors-picks/2021/04/05/358353/corporate-
governance-reforms-under-the-revised-corporation-code/#:~:text=Consequently%2C
%20CG%20reforms%20in%20the,termed%20as%20the
%20%E2%80%9Cstakeholders.%E2%80%9D

Article Title: " Starting A Small Business in Tough Economic Times "
Brief Summary:
Starting a Small Business in Tough Economic Times refers to the process of launching a
new venture during times of economic hardship, such as recessions or financial crises.
This article explores the challenges and opportunities of starting a small business in
such an environment and provides some strategies for success.
 Antipolo City
2nd semester, AY 2023 -2024

Accounting Research 1
Assignment 1- Prelim

Potential Research Problems:

One potential research problem that has accounting or financial implication is the impact
of economic downturns on small business financial performance and survival rates.
Specifically, researchers could explore the following:

1. Exploring the factors that determine the survival rate of small businesses
during economic downturns, such as industry characteristics, ownership
structure, financial management practices, and access to capital.

2. Investigating the role of social capital, such as networking, mentoring, and

collaboration, in helping small businesses navigate through tough economic
times.

3. Examining the impact of regulatory policies, such as taxation, licensing, and

permitting, on small business performance and growth during economic
crises.

4. Analyzing the effectiveness of different financing options, such as loans,

grants, crowdfunding, and equity investments, in supporting small business
resilience and expansion during tough economic times.

5. Assessing the impact of digital technologies, such as e-commerce, social

media, and cloud computing, on small business survival and growth during
economic crises, as well as the potential risks and opportunities arising from
these technologies.

Source: https://www.investopedia.com/articles/pf/09/start-business-in-depressed-
economy.asp
 Antipolo City
2nd semester, AY 2023 -2024

Accounting Research 1
Assignment 1- Prelim

Title Article: “Navigating the future of Philippine real estate”

Brief Summary:
Navigating the Future of Philippine Real Estate could be analyzing the impact of real
estate tax reforms on property values and investment decisions. As the Philippine
government has been implementing various tax reforms in recent years, such as
increasing real property taxes and imposing value-added tax on certain real estate
transactions, it would be interesting to examine how these changes affect property
prices, rental yields, capital appreciation potential, and overall investment
attractiveness in different areas and property types. This research could provide
insights for real estate developers, investors, and policymakers to better understand
the potential risks and opportunities arising from tax reforms and make informed
decisions accordingly.

Potential Research Problem:

1. Impact of real estate tax reforms: The report discusses the proposed real
estate tax reforms, which aim to streamline the tax system and increase
transparency in the industry. Research could investigate how these reforms
will affect property values, transaction volumes, and investor behavior.

2. Financing options for real estate developers: The report notes that access to
financing is a major challenge for real estate developers in the Philippines
due to high interest rates and stringent collateral requirements. Research
could explore alternative financing sources, such as crowdfunding or real
estate investment trusts (REITs), and their potential impact on the industry.

3. Property valuation methods: The report suggests that the current valuation
methods used in the Philippines may not accurately reflect the true value of
properties due to factors such as lack of transparency and inconsistent
appraisals. Research could investigate alternative valuation methods, such as
big data analytics or machine learning, and their potential benefits and
drawbacks.
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2nd semester, AY 2023 -2024

Accounting Research 1
Assignment 1- Prelim

4. Impact of infrastructure development: The report highlights the importance of

infrastructure development in driving real estate demand and values.
Research could investigate the relationship between infrastructure
development and property values, as well as the potential risks and benefits
of investing in infrastructure projects.

5. Real estate market trends: The report identifies several trends shaping the
real estate market in the Philippines, such as the increasing demand for co-
working spaces and the growing popularity of serviced apartments. Research
could investigate the drivers and implications of these trends, as well as their
potential impact on the industry and investors.

Source: https://business.inquirer.net/436281/navigating-the-future-of-philippine-real-
estate