The idea of "Separation between taxpayer and government" is a very important idea in the field of public sector accounting. The idea of " Separation between capital and administration" clarifies accountability to capitalistsin terms of business administration and has helped systems of accounting to be developed. The opposite but independent existence of taxpayer and government requires the balance sheet of taxpayer and government for each economic unit. However, according to the Federal Accounting Standards Advisory Board, taxpayers are treated as the same economicunit as the government. In this article, the reasons for two balance sheets for Taxpayer and government and the method of costing for public good are described.
