Obstacles to the Total Non-Compliance of Libyan Commercial Banks’ Financial Reports with the Requirements of International Accounting Standard (IAS) 1 from the Perspective of Faculty Members and Auditors in Libya: A Field Study

Abstract

This study aims to identify the main obstacles that hinder the full implementation of International Accounting Standard (IAS) 1 in Libyan commercial banks. To achieve the study's objective, the descriptive-analytical approach was adopted. A questionnaire was designed as the primary data collection tool and distributed to a population consisting of faculty members and external auditors registered with the Central Bank of Libya. Both descriptive and inferential statistical methods were employed to analyze the collected data.

The findings revealed that the financial reports of Libyan commercial banks face several obstacles that impede full compliance with IAS 1 requirements. These obstacles are related to accounting education, the regulation of the accounting profession, as well as the economic and political environment. The study further confirmed that non-compliance is mainly associated with insufficient specialized accounting training, inadequate regulatory and legal frameworks, and the effects of economic and political instability.

Based on these findings, the study recommends providing intensive training programs for accountants, updating local legislation to align with international accounting standards, strengthening regulatory oversight to ensure compliance with IAS 1, and enhancing the role of universities in teaching and promoting International Accounting Standards.