The Applicability of IFRS 15 to the Outputs of the Financial Accounting System ،A Field Study of the Libyan Joint Oil Company

Abstract

This research investigates the extent to which Libya Oil Joint Company is prepared to implement International Financial Reporting Standard IFRS 15 within its accounting system framework. The study focuses on evaluating the gaps between the current accounting practices and the requirements of IFRS 15, in addition to identifying the challenges that may arise during the standard’s implementation. Furthermore, the study aims to propose practical mechanisms for enhancing the company’s accounting systems to ensure compliance with IFRS 15.

To achieve these objectives, a descriptive-analytical methodology was adopted. The primary data collection tool was a structured questionnaire, developed with reference to relevant prior studies. The questionnaire was distributed to a random sample of employees working in the accounting and auditing departments at Libya Oil Joint Company. The collected data were analyzed using the Statistical Package for the Social Sciences (SPSS).

Findings reveal a high level of organizational readiness to adopt IFRS 15. The potential application of the standard is expected to positively influence the quality, accuracy, and reliability of the company’s accounting outputs. However, the study also identified several critical challenges, notably in areas such as revenue allocation, multi-phase contract management, and the lack of integration between accounting systems and other operational data sources.

In response to these findings, the study recommends revising and upgrading the existing financial accounting system, offering specialized training for accounting personnel, and integrating advanced analytical technologies to support alignment with IFRS 15 requirements.