The Impact of Inflation and Exchange Rate Fluctuation on Accounting Performance in Pharmaceutical and Medical Equipment Companies Operating in Libya An Applied Study on a sample of Companies Operating in the Libyan Market

Abstract

This study aimed to examine the impact of inflation and exchange rate fluctuations on accounting performance in pharmaceutical and medical equipment companies operating in Libya. The study focused on identifying the effects of these economic variables on accounting measurement quality and financial information reliability. The descriptive analytical approach was adopted, and a questionnaire was used as the main data collection tool. The collected data were analyzed using the SPSS statistical program.
The findings revealed a statistically significant impact of inflation and exchange rate fluctuations on accounting performance. The results showed that continuous exchange rate fluctuations create difficulties in evaluating assets and liabilities denominated in foreign currencies, while inflation negatively affects the credibility of financial statements prepared under the historical cost basis. The study also highlighted the importance of applying international accounting standards related to foreign currency exchange and inflation accounting in order to improve the quality of financial reporting.
The study recommended the development of accounting systems, enhancement of financial disclosure practices, and training accounting staff on the application of international accounting standards to improve accounting performance in Libyan companies.