Challenges in Implementing International Public Sector Accounting Standards (IPSAS) in Libyan Government Units from the Perspective of Financial Controllers and Their Assistants at the Financial Services Offices in Zliten and Msallata

Abstract

 The study aimed to identify the challenges facing the implementation of International Public Sector Accounting Standards (IPSAS) in Libyan government units, including challenges related to the organizational structure, accounting system, and legal and regulatory framework. The study also sought to propose a set of recommendations to mitigate these challenges. To answer the research questions and test the study hypotheses, the descriptive-analytical approach was adopted. A comprehensive survey method was employed targeting the study population, which consisted of financial controllers and their assistants at the Financial Services Monitoring Offices in the cities of Zliten and Msallata. A total of (39) valid questionnaires were collected and analyzed. The Statistical Package for the Social Sciences (SPSS) was used to test the study model and analyze the data.

The findings revealed the existence of several organizational structure-related challenges that hinder the implementation of IPSAS in Libyan government units. The results also indicated the presence of accounting system-related challenges, as well as legal and regulatory challenges, that negatively affect the effective adoption of IPSAS. Based on these findings, the study proposed several recommendations, the most important of which include restructuring government units in line with IPSAS requirements, establishing specialized governmental accounting and financial reporting units, issuing legislation or official regulations mandating the implementation of IPSAS according to a specified timetable, and developing the governmental accounting system to align with IPSAS requirements through a gradual transition from the cash basis to the accrual basis of accounting