Part 3 is concerned with the company’s stores. According to Article (199) each
company must keep two books for its store. One should be kept by a storekeeper and
another by the financial department. While, Article (178) indicates that a company
must follow the FIFO (first in first out) method of inventory valuation.
The LSM law
In 2006 the Libyan General People’s Committee issued decision No. 134 of 2006 for
the purpose of establishing the LSM with 20 million LYD capital. In all, 15 companies
are listed on the LSM (see Appendix 5). The LSM is controlled and observed by the
General Public Committee of the Investment, Economic and Commerce. According to
the Article No. 3 of the decision. The main objectives of the LSM are as follows:
(1) to prepare an appropriate investment environment in order to achieve the
general welfare;
(2) to encourage the saving habit and raise the investment knowledge in order to
direct the capital to the most beneficial sectors;
(3) to control and observe financial transactions;
(4) to serve the social and economic development;
(5) to contribute in the process of privatization of state owned enterprises;
(6) to conduct research and collect statistical data about the listed enterprises;
(7) to establish the required standards to ensure and secure the correctness of the
financial market’s transactions;
(8) to develop the competence of the LSM’s employees by conducting the
necessary training;
(9) to develop cooperative relationships with other regional and international
financial markets; and
(10) to organize stocks (shares) of new publicly companies.
The Article No. 29 of the decision requires all public and private companies that have
one million LYD capital or more must register in the LSM. In addition, according to
the Article No. 55 of the decision, all listed companies’ financial reports have to be
prepared and audited according to the IASs and international standards of auditing
(The Libyan Stock Market, 2010).
Part 3 is concerned with the company’s stores. According to Article (199) eachcompany must keep two books for its store. One should be kept by a storekeeper andanother by the financial department. While, Article (178) indicates that a companymust follow the FIFO (first in first out) method of inventory valuation.The LSM lawIn 2006 the Libyan General People’s Committee issued decision No. 134 of 2006 forthe purpose of establishing the LSM with 20 million LYD capital. In all, 15 companiesare listed on the LSM (see Appendix 5). The LSM is controlled and observed by theGeneral Public Committee of the Investment, Economic and Commerce. According tothe Article No. 3 of the decision. The main objectives of the LSM are as follows:(1) to prepare an appropriate investment environment in order to achieve thegeneral welfare;(2) to encourage the saving habit and raise the investment knowledge in order todirect the capital to the most beneficial sectors;(3) to control and observe financial transactions;(4) to serve the social and economic development;(5) to contribute in the process of privatization of state owned enterprises;(6) to conduct research and collect statistical data about the listed enterprises;(7) to establish the required standards to ensure and secure the correctness of thefinancial market’s transactions;(8) to develop the competence of the LSM’s employees by conducting thenecessary training;(9) to develop cooperative relationships with other regional and internationalfinancial markets; and(10) to organize stocks (shares) of new publicly companies.The Article No. 29 of the decision requires all public and private companies that haveone million LYD capital or more must register in the LSM. In addition, according tothe Article No. 55 of the decision, all listed companies’ financial reports have to beprepared and audited according to the IASs and international standards of auditing(The Libyan Stock Market, 2010).
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