Obstacles to Implementing of International Accounting Standards on Oil Sectors in Libya

Abstract

Accountancy discipline aimed at measuring and conveying industrial unit related data
and information to different parties. Through the study of the impact of IFRS on the financial
information quality contained in the financial statements and highlight the role of the
International Financial Reporting Standards adoption in influencing the decisions to increase the
investments in the Libyan financial market, furthermore the impact of IFRS on the external audit
process. It also analyses the factors that may face the Libyan companies to apply IFRS. A total of
382 respondents have answered the questionnaires, including accountants and financial managers
who prepare financial statements and external auditors. The findings suggest that IFRS adoption
increases the accounting information quality in the financial statements of the companies in
Libya, its impact on the decision of investors and increase foreign direct investment and its
impact on an external audit in Libya, the findings also suggest that IFRS adoption in Libya
affected by some factors such as economic conditions, tax and legal systems.