The reality of the responsibility accounting system in Libyan institutions

Exploratory study

Abstract

This study aims to identify the state of the responsibility accounting system in Libyan institutions in terms of its use, the availability of its elements, the factors influencing its use, and the obstacles that prevent its use. The study was based on the analytical descriptive approach. At the level of data collection, the study conducted a questioner survey, and data collected from 39 institutions. The study concluded that the responsibility accounting system is well known to Libyan institutions, although it is currently used by about half of the surveyed institutions, and some of them are studying applying the system. The majority of institutions considered the responsibility accounting system as very important, and it is commensurate with the nature of their institutions operations. The results of the study showed that the elements of the responsibility accounting system in the Libyan institutions are generally available on average level. The most available elements are related to information system then the elements related to the reporting system, followed by the elements related to the organizational structure. The study recommended increasing the knowledge of responsibility accounting system, its importance and benefits to the institutions in order to encourage these institutions to adopt the implementation of this system, as well as increasing the interest in providing some of the elements of responsibility accounting system which are less available such as elements related to standard cost and Incentive system, also to provide some of its components.