Environment impacts of economic units activity and their Reflects on Economic and Accounting

Abstract

The activity of any economic unit has a negative effect on environment life a pollution of Air, water &soil .it is
difficult to measure these effects because they are external expenditures .in order to prevent these expenditures they
should be estimated and added them to economic unit costs.
The accounting system in Iraq does not measure and disclosure these costs this will reflect on investors and
managers decisions, therefore .it will be necessary to adjust this systems and to ensure the measurement and disclosure of environmental requirements' and constitution which represents unit expenditures to reduce the pollution level to the level that could be accepted internationally, and also compensations for losses occurred to society. If we consider this case on macrocosmic level, the society will face losses due to the activities of those economics units which represent losses occurred to natural resource which implies is estimation of gross domestic product (GDP) by taking into account the effects of environment.