Author(s): Donya Jasim Sahib, Ali Abbas Kareem, Hayder Oudah Kadhim
The research aims to highlight the types of environmental costs used to adapt the standardized accounting system applied in the municipalities while disclosing environmental information in the financial statements. The research was applied by conducting an analytical study of financial reports in the Diwaniyah Municipality Directorate for the years 2015-2014. The research reached a set of conclusions, the most important of which is that the financial reports prepared by the Diwaniyah Municipality Directorate did not reveal any quantitative, qualitative or financial information about the environmental costs and revenues of the Diwaniyah Municipality and their non-application of the principle of recognition, measurement, and application. For the accounting disclosure of environmental costs and revenues issued by the Intergovernmental Group of Experts on International Accounting Standards. The research recommended a set of recommendations, the most important of which is the necessity of the contribution of the competent authorities in deepening the concept of environmental accounting and the importance of establishing an accounting system with an emphasis on the need to adequately disclose financial reports on environmental accounting information.