Challenges of Applying International Financial Reporting Standard (IFRS 13) – Fair Value in Libyan Commercial Banks: Al Jumhuriya, North Africa, Al-Sahari -Sabratha and Surman

Abstract

The study aimed to identify the key challenges facing the implementation of IFRS 13 in Libyan commercial banks and explore possible solutions. The inductive approach was employed to analyze the relevant literature, while the descriptive-analytical method was applied to examine the practical reality of Libyan commercial banks. A questionnaire was designed and distributed to selected banks (Al-Jumhouria, North Africa, and Al-Sahari) in Sorman and Sabratha. Out of 50 distributed questionnaires, 46 were retrieved. The study revealed that the challenges of implementation are not purely financial; rather, they represent a combination of technical (infrastructure), human (competencies), and environmental (economic, political, and legislative) factors. The study recommended enhancing the technical infrastructure, developing human capacities, and adapting to environmental conditions by establishing a local legislative and regulatory framework that mandates banks to apply IFRS standards.