Challenges and opportunities of adopting IFRSs in Libya: the case of Libyan oil and gas industry

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Abushrenta, MMA, 2022. Challenges and opportunities of adopting IFRSs in Libya: the case of Libyan oil and gas industry. PhD, Nottingham Trent University.

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Abstract

This thesis is built around a scientific examination and evaluation of the potential feasibility of the adoption of International Financial Reporting Standards (IFRS) in Libya. Given the importance of petroleum in the economy, the study aims to examine the feasibility of IFRS for the oil and gas industry by exploring the opportunities and challenges of this transition. In achieving the aim of the study, a thorough analysis of the potential benefits and challenges has been conducted, using an exhaustive survey consisting of semi-structured interviews and structured questionnaires. The new institutional theory (NIT) has been used to understand the impact of external pressures on the adoption of IFRS in developing nations in the Middle Eastern and North African region which includes Libya. The external pressures explored in this work are from the institutions like the IMF and the World Bank. Furthermore, the lens of the NIT is also used to explore the challenging impact of internal pressures on IFRS adoption. These factors include administrative, legislative, and cultural environments. Based on the application of a mix of qualitative and quantitative approaches, the study has demonstrated a better explanation of the adoption of high-quality accounting practices like IFRS in the case of Libya. The examination and evaluation of the results obtained from the questionnaire and interviews, offered in several chapters, surfaced several interesting findings. Firstly, the scores attached to different benefits of IFRS adoption showed to be significantly higher than those of challenges; hence yielding a positive net benefit for IFRS, whereas, interestingly the language of the IFRS is not challenging anymore as IFRS has been adopted by many countries and it has been translated to many different languages. Furthermore, a comparison between the Libyan accounting system and IFRS is also presented highlighting the proximity of accounting practise in the extractive industries in Libya to that of international practises. Secondly, as primarily derived from the interviews, it became evident a complex number of cultural, political, and economic factors have been responsible for the severe delay in the decision on adoption of the international accounting standards in the country. Although factors such as legal issues were highlighted by some interviewees, almost all interviewees blamed the two professional bodies (LAAA and LAB) as the main sources of delay. Finally, having considered the responses by the interviewees, the issue surrounding incompatibility and inconsistency of the Libyan local laws was regarded as another vexing factor responsible for delays in the adoption of international standards. On the issue of inconsistency and lack of transparency of the Libyan commercial law, the survey revealed that the existing Libyan commercial law has been a severe burden in the way of the adoption of international standards.

Item Type:	Thesis
Creators:	Abushrenta, M.M.A.
Date:	April 2022
Rights:	This work is the intellectual property of the author. You may copy up to 5% of this work for private study, or personal, non-commercial research. Any re-use of the information contained within this document should be fully referenced, quoting the author, title, university, degree level and pagination. Queries or request for any other use, or if a more substantial copy is required, should be directed to the owner of the Intellectual Property Rights.
Divisions:	Schools > Nottingham Business School
Record created by:	Linda Sullivan
Date Added:	25 Apr 2023 09:53
Last Modified:	25 Apr 2023 09:53
URI:	https://irep.ntu.ac.uk/id/eprint/48827