CHAPTER FOUR

DATA ANALYSIS, INTERPRETATION AND PRESENTATION

4.1 Introduction

The data analysis, interpretation and presentation of this study focus on the presenting data

gathered from the primary data which is the questionnaire and the discussion of findings. In the

presentation of collected data, 450 questionnaires were distributed and 394 were gathered back

for analysis. In essence this implies that 50% effective response rate was achieved. Zenith bank

outlets within Lagos state were surveyed.

While the statistical analysis allows for a quantitative description and explanation of data

collected, the descriptive analysis involves conceptual description of available data. The

statistical tools employed to analyse the data are simple frequency percentage of results, simple

regression and multiple regression techniques for each hypothetical proposition.

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4.2 Socio-Demographic Data Presentation

Table 4.1 Frequency Distribution of Respondents on Socio-Demographic Data

S/N Response Label Frequency Percentage (%)

1 Gender Male 109 54.5

Female 91 45.5

2. Age 14-24 70 35.0

25-34 84 42.0

35-44 29 14.5

Above 44 17 8.5

3. Marital Status Single 81 40.5

Married 105 52.5

Divorced 7 3.5

4. Religion Christian 113 56.5

Islam 71 35.5

Others 2 1.0

5, Educational Qualification O’Level 57 28.5

Undergrad 70 35.0
uate/OND

B.sc/HND 29 14.5

Above 5 2.5
B.sc/HND

Fieldwork Survey, 2022

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As shown in table 4.1 above, male respondents were 54.5% of the total respondents while the

female respondents were 45.5%. This indicates that the male respondents responded higher than

the female respondents.

Table 4.1. indicates that while only 35% of the respondents were those in 14 years but less than

25 years. 42% of the respondents were 25 years but less than 35 years, and 14.5% were recorded

for those that were 35 years but less than 45 years. For 45 year and above, there are 8.5%

respectively. This shows that the majority of the respondents must have had sufficient exposure

and experience needed to understand the issues raised in the research instrument.

From the table 4.1, Respondents were quizzed on their marital status, 40.5% of the respondents

were single,52.5% were single while 3.5% of the respondents were divorced. 56.5% of the

respondents are Christians by religion, 35.5% are Islam while 1% were basically practicing other

religion. On educational qualification, 28.5% of the respondents had at least O’Level, 35% were

undergraduate or had OND qualificatiom, 14.5% 0f the respondents had B.sc or HND while

2.5% had above B.sc and HND. This indicated that a number of our respondents had the

educational competency required to fulfill this research.

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4.3 The Impact of the principle of clarity on the quality of financial statements of deposit

money banks in Nigeria.

Table 4.2 Percentage Distribution of Respondents on the Examine the influence of the

principle of clarity on the quality of financial statements of deposit money banks in Nigeria.

Scale Level Mean Std Dev.

Variables SD D U A SA
1 2 3 4 5
IFRS brings transparency by 23.1 12.5 29.3 24.1 8.54 2.53 1.243
enhancing the international
comparability and quality of financial
information

Clarity quality of financial statement 13.8 34.0 21.2 15.3 13.7 2.85 1.286
helps to foster better understanding of
the financial statements by users of
accounting information

Clarity quality of financial statement 18.2 28.6 25.1 16.3 11.8 2.75 1.324
encourages managers to be creative
and to use professional judgment

Clarity quality is indicated by 15.3 24.5 8.9 31.5 19.8 3.26 1.643
completeness, unbiased measurement
and clear presentation

Source: Field Survey, 2022

In table 4.3 The Influence of IFRS Adoption on the Quality of Clarity in Nigerian Banks through

Effective Communication for which data was sought from the entire respondents IFRS brings

transparency by enhancing the international comparability and quality of financial information,

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Clarity quality of financial statement helps to foster better understanding of the financial

statements by users of accounting information, Clarity quality of financial statement encourages

managers to be creative and to use professional judgment, and Clarity quality is indicated by

completeness, unbiased measurement and clear presentation. The respondents responded to the

various items, wherein 24.1 percent expressed their agreement in terms of ‘IFRS brings

transparency by enhancing the international comparability and quality of financial information`,

29.3 percent indifferent, and 12.5 percent flaunted their disagreement. For ‘Clarity quality of

financial statement helps to foster better understanding of the financial statements by users of

accounting information’, while respondents expressed 34 percent in disagreement, 15.3 percent

were in support with it, then, 21.2 percent were indecisive. As for ‘Clarity quality of financial

statement encourages managers to be creative and to use professional judgment’, 28.6 percent of

the entire respondents displayed their disagreement, 25.1percent were indecisive, and

16,3percent agreed. For the ‘Clarity quality is indicated by completeness, unbiased measurement

and clear presentation`, 31.5 percent agreed, 8.9 percent undecided, and 24.5 percent expressed

their displeasure. The result of the descriptive statistics on the Influence of IFRS Adoption on the

Quality of Clarity in Nigerian Banks through Effective Communication clearly show that all the

respondents have similar opinions about all the subject matters as indicated in their mean and

standard deviation scores.

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4.4 To Ascertain The Comparability Of IFRS on the quality of financial statements of

deposit money banks in Nigeria..

Table 4.3 Percentage Distribution of Respondents on the comparability of IFRS on the

quality of financial statements of deposit money banks in Nigeria.

Scale Level Mean Std Dev.

Variables SD D U A SA
1 2 3 4 5
Comparability of financial statements 16.1 22.5 25.3 35.1 10.5 2.61 1.272
improves investors decision making 4
process by reducing their information
processing cost

Comparability facilitates benchmarking 13.8 32.0 15.2 22.3 16.7 2.75 1.286
across firms, higher comparability ensures
that investors can access more relevant
peer and overall industry information.

Comparability of financial statements over 13.2 16.7 20.1 29.3 20.8 2.85 1.324
different accounting periods can be
ensured by the application of similar
policies over a period of time.

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Source: Field Survey, 2022
In table 4.4, Impact of Comparability On The Financial Statements Of Deposit Money Banks In

Nigeria for which data was sought from the entire respondents were Comparability of financial

statements improves investors decision making process by reducing their information processing

cost, Comparability facilitates benchmarking across firms, higher comparability ensures that

investors can access more relevant peer and overall industry information, and Comparability of

financial statements over different accounting periods can be ensured by the application of

similar policies over a period of time.. The respondents responded to the various items, wherein

35.1 percent expressed their agreement in terms of ‘Comparability of financial statements

improves investors decision making process by reducing their information processing cost`, 25.3

percent indifferent, and 22.5 percent flaunted their disagreement. For ‘Comparability facilitates

benchmarking across firms, higher comparability ensures that investors can access more relevant

peer and overall industry information’, while respondents expressed 32 percent in disagreement,

22.3 percent were in support with it, then, 15.2 percent were indecisive. As for ‘Comparability of

financial statements over different accounting periods can be ensured by the application of

similar policies over a period of time`, 29.3 percent of the entire respondents displayed their

agreement, 20.1percent were indecisive, and 16.7percent disagreed. Impact of Comparability On

The Financial Statements Of Deposit Money Banks In Nigeria clearly show that all the

respondents have similar opinions about all the subject matters as indicated in their mean and

standard deviation scores.

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4.5 To examine the principle of relevancy on the quality of fianacial statement of

deposit money banks in Nigeria.

Table 4.4 Percentage Distribution of Respondents on the relevance of IFRS on the

quality of financial statements of deposit money banks in Nigeria.

Scale Level
Mean Std Dev.
Variables SD D U A SA

1 2 3 4 5

Relevancy is the concept that information 23.1 12.5 29.3 24.1 8.54 2.53 1.243

generated by an accounting system should

impact the decision making of someone

pursuing the information

As a source of globally comparable 13.8 34.0 21.2 15.3 13.7 2.85 1.286

information, IFRS are also of vital importance

to regulators around the world

Relevancy ensures that financial statements are 18.2 28.6 25.1 16.3 11.8 2.75 1.324

available to users or investor when they are

needed by improving timeliness of information

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Relevancy ensures that accounting information 15.3 24.5 8.9 31.5 19.8 3.26 1.643

must possess both confirmatory value and

predictive value, i.e. it must provide

information about paste and future events

Source: Field Survey, 2021

In table 4.3, To examine how the introduction of the International Financial Reporting Standards

(IFRS) has changed how users of Nigerian bank financial reports make judgments based on the

relevance principle for which data was sought from the entire respondents were Relevancy is the

concept that information generated by an accounting system should impact the decision making

of someone pursuing the information, As a source of globally comparable information, IFRS are

also of vital importance to regulators around the world, Relevancy ensures that financial

statements are available to users or investor when they are needed by improving timeliness of

information, and Relevancy ensures that accounting information must possess both confirmatory

value and predictive value, i.e. it must provide information about paste and future events. The

respondents responded to the various items, wherein 24.1 percent expressed their agreement in

terms of ‘Relevancy is the concept that information generated by an accounting system should

impact the decision making of someone pursuing the information`, 29.3 percent indifferent, and

12.5 percent flaunted their disagreement. For ‘As a source of globally comparable information,

IFRS are also of vital importance to regulators around the world`, while respondents expressed

34 percent in disagreement, 15.3 percent were in support with it, then, 21.2 percent were

indecisive. As for ‘Relevancy ensures that financial statements are available to users or investor

when they are needed by improving timeliness of information`, 28.6 percent of the entire

respondents displayed their disagreement, 25.1percent were indecisive, and 16,3percent agreed.

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For the ‘Relevancy ensures that accounting information must possess both confirmatory value

and predictive value, i.e. it must provide information about paste and future events’, 31.5 percent

agreed, 8.9 percent undecided, and 24.5 percent expressed their displeasure. The result of the

descriptive statistics to examine how the introduction of the International Financial Reporting

Standards (IFRS) has changed how users of Nigerian bank financial reports make judgments

based on the relevance principle clearly show that all the respondents have similar opinions

about all the subject matters as indicated in their mean and standard deviation scores.

Hypothesis One:

H1:There is a significant relationship between IFRS adoption and clarity quality requirements of

Nigerian deposit money banks.

H0:There is no significant relationship between IFRS adoption and clarity quality requirements

of Nigerian deposit money banks.

Table 1. Model Summary

Mod R R Adjusted Std. Error Change Statistics

el Square R Square of the R Square F df1 df2 Sig. F

Estimate Change Change Change

1 .412a .206 .162 4.84352 .146 33.474 1 177 .000

a. Predictors: (Constant), Quality

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Table 2. ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 531.282 1 531.282 43.483 .000b

1 Residual 4013.932 187 14.243

Total 4362.631 193

a. Dependent Variable: IFRS adoption

b. Predictors: (Constant), Quality

Table 3. Coefficientsa

Model Unstandardized Standardized T Sig. 95.0% Confidence Interval

Coefficients Coefficients for B

B Std. Error Beta Lower Upper

Bound Bound

(Constant) 31.210 .863 24.165 .000 19.479 22.941

1 IFRS
-.272 .083 -.457 -5.786 .000 -.376 -.185
adoption

a. Dependent Variable: IFRS adoption

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Y= a0 + β1x1+e

Where a0= intercept;

β = coefficient of independent variable

X1= Quality (independent variable)

Y= Effect of IFRS adoption on Quality factors (dependent variable)

e= error

The coefficient of simple linear determination R2 of 0.146 which implies that 14.6% of the total

variation in the effect of IFRS adoption on religious factors was explained by the independent

variables (Quality). The remaining 85.4% not explained could be attributed to the stochastic

variation.

The Beta value of the coefficients X1 was positively and statistically significant at 5% levels.

A simple regression was run to predict effect of IFRS adoption on Quality factors from Quality

requirement (independent variable). The table 1 indicates that the independent variables yielded

a coefficient of determination (R2) of 0.146 accounting for 14.6% of the proportion of variance in

dependent variable that is explained by the independent variables. The table 2, then, shows that

the analysis of variance for the simple regression data produced F-ratio value of 31.210 which is

significant at 0.05 (. i.e. F (-0.272) = 31.210, p < 0.05). In table 3, while the independent variable

(Quality) has negative but statistically significance on response variable (effect of IFRS adoption

on Quality factors among Nigeria bank).

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Hypothesis Two:

Hypothesis Two:

H1: There is a significant relationship between deposit money banks and the comparability of

their financial statement.

H0: There is no significant relationship between deposit money banks and the comparability of

their financial statement.

Table 4. Model Summary

Mod R R Adjusted R Std. Error Change Statistics

el Square Square of the R Square F df1 df2 Sig. F

Estimate Change Change Change

1 .527a .325 .363 4.65732 .395 135.109 1 196 .000

a. Predictors: (Constant),

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Table 5. ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 1234.874 1 1234.874 107.168 .000b

1 Residual 2150.290 196 11.535

Total 3634.254 184

a. Dependent Variable: Deposit Money Banks

b. Predictors: (Constant),

Table 6. Coefficientsa

Model Unstandardized Standardize T Sig. 95.0% Confidence

Coefficients d Interval for B

Coefficients

B Std. Error Beta Lower Upper

Bound Bound

(Constan
9.173 .732 12.530 .000 7.729 10.617
t)

1 Deposit

Money .477 .046 .598 10.448 .000 .387 .567

Banks

a. Dependent Variable: Deposit Money Banks

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Y= a0 + β1x1+e

Where a0= intercept;

β = coefficient of independent variable

X1= Comparability of their Financial Statement.(independent variable)

Y= Impact of deposit money banks on comparability of the financial statement.(dependent

variable)

e: error

The coefficient of simple linear determination R2 of 0.325 which implies that 32.5% of the total

variation in the impact of deposit money banks on the comparability of the financial statement

was explained by the independent variable (comparability of their financial statement). The

remaining 67.5% not explained could be attributed to the stochastic variation.

The Beta value of the coefficients X1 was positively and statistically significant at 5% levels.

A simple regression was run to predict impact of deposit money banks on comparability of the

financial statement among among Nigeria Bank (dependent variable) from comparability

(independent variable). The table 4 indicates that the independent variables yielded a coefficient

of determination (R2) of 0.325 accounting for 32.5%% of the proportion of variance in dependent

variable that is explained by the independent variables. The table 5, then, shows that the analysis

of variance for the simple regression data produced F-ratio value of 107.168 which is significant

at 0.05 (. i.e. F (0.398) = 107.168, p < 0.05). In table 6, the independent variable(comparability

of the financial statement) has positive and statistical significance on response variable (impact

of deposit money banks on comparability of the financial statement).

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Hypothesis Three:

H1: There is a significant relationship between IFRS adoption and relevance principle

of Nigerian deposit money banks

H0: There is no significant relationship between IFRS adoption and relevance principle

of Nigerian deposit money banks

Table 1. Model Summary

Mod R R Adjusted Std. Error Change Statistics

el Square R Square of the R Square F df1 df2 Sig. F

Estimate Change Change Change

1 .412a .206 .162 4.84352 .146 33.474 1 177 .000

a. Predictors: (Constant), Relevance principle

Table 2. ANOVAa

Model Sum of Squares Df Mean Square F Sig.

Regression 531.282 1 531.282 43.483 .000b

1 Residual 4013.932 187 14.243

Total 4362.631 193

a. Dependent Variable: IFRS adoption

b. Predictors: (Constant), Relevance principle

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Table 3. Coefficientsa

Model Unstandardized Standardize T Sig. 95.0% Confidence

Coefficients d Interval for B

Coefficients

B Std. Error Beta Lower Upper

Bound Bound

(Constan
31.210 .863 24.165 .000 19.479 22.941
t)
1
IFRS
-.272 .083 -.457 -5.786 .000 -.376 -.185
adoption

a. Dependent Variable: IFRS adoption

Y= a0 + β1x1+e

Where a0= intercept;

β = coefficient of independent variable

X1= Relevance principle (independent variable)

Y= Effect of IFRS adoption on relevance principle (dependent variable)

e= error

The coefficient of simple linear determination R2 of 0.146 which implies that 14.6% of the total

variation in the effect of IFRS adoption on relevance principle was explained by the independent

variables (relevance principle). The remaining 85.4% not explained could be attributed to the

stochastic variation.

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The Beta value of the coefficients X1 was positively and statistically significant at 5% levels.

A simple regression was run to predict effect of IFRS adoption on relevance principle

(independent variable). The table 1 indicates that the independent variables yielded a coefficient

of determination (R2) of 0.146 accounting for 14.6% of the proportion of variance in dependent

variable that is explained by the independent variables. The table 2, then, shows that the analysis

of variance for the simple regression data produced F-ratio value of 31.210 which is significant

at 0.05 (. i.e. F (-0.272) = 31.210, p < 0.05). In table 3, while the independent variable (relevance

principle) has negative but statistically significance on response variable (effect of IFRS

adoption on relevance principle among Nigeria bank).

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