Financial Reporting Standards can be applied in Libya – requirements, obstacles, and their impact on improving the quality of financial reports

Abstract

This study aimed to analyze the reality of applying international accounting standards in Libya, identify the obstacles hindering their implementation, determine the requirements for successful adoption, and examine their impact on the quality of financial reports. The study adopted a descriptive analytical approach and used a questionnaire as the main data collection tool, targeting a sample of accountants, academics, and accounting faculty members. The findings revealed the presence of regulatory, legislative, and professional obstacles that limit the application of international standards, alongside a high level of agreement on the importance of improving educational, technical, and institutional environments. The results also confirmed a strong positive impact of applying international accounting standards on the quality of financial reporting, particularly in terms of transparency, credibility, and user confidence. The study concluded with the necessity of adopting a clear national strategy for implementing international accounting standards to enhance the quality of financial reporting in Libya