Abstract: Beside structural problems, Libyan economy is characterized by growth and disintegration of the national market, insufficiently active investment market, poor investment climate and the problems related to Microeconomics (lower productivity and efficiency of doing business). Taking into account all these problems, this research will be based on the study of the problems of the current system of financial reporting. Practice has shown that when it comes to the level of the national economy and administration, there is a low level of qualifications in the field of application of International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) for their non-compliance with existing standards of accounting and auditing in Libya.