A set of simple models is proposed in this study to measure the cost of the direct effects of water pollution on human resources. Inductive reasoning is used while developing and applying the models on a hypothetical case to demonstrate the feasibility and practicability of the proposed models. By testing the validity and applicability of the proposed models, a professional accountant may recognize the accounting transactions tangibly in the financial statements of the polluted companies. This will improve the quality of companies’ financial reporting
