Accounting practices in Libyan oil companies comply with the requirements of Financial Reporting Standard No. (IFRS-6) " A case study of the Arabian Gulf Oil Company "

Abstract

The study aims to provide a unified accounting framework followed by all Libyan oil companies, most notably the Arabian Gulf Oil Company, when preparing financial statements. This ensures consistency, transparency, and comparability between different companies, both regionally and internationally. The study adopted an integrated approach combining descriptive, analytical, inductive, and deductive methods based on previous studies in different environments, the company's cost accounting system, and the company's case study methodology to arrive at accurate results regarding the company's handling of exploration and drilling costs. A questionnaire was used to collect data from the employees we were able to reach. The sample consisted of (50) employees in the (Finance - Costing) department. The study concluded with the most important result: a positive relationship exists between the application of the International Financial Reporting Standard (IFRS-6) and the improvement of the quality of the Arabian Gulf Oil Company's financial reports, especially with regard to the concepts of relevance and reliability. The most important recommendation of the study is: to reconsider the existing system, to allocate a special section for this vital industry in line with international standards, and to work on issuing a comprehensive and integrated accounting system specific to the oil and gas industry.