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How the Changes in This Statement Will Improve Financial Reporting <br /> The requirements in this Statement will improve financial reporting by providing fund balance categories <br /> and classifications that will be more easily understood Elimination of the reserved component of fund <br /> balance in favor of a restricted classification will enhance the consistency between information reported in <br /> the government -wide statements and information in the governmental fund financial statements and avoid <br /> confusion about the relationship between reserved fund balance and restricted net assets <br /> The fund balance classification approach in this Statement will require governments to classify amounts <br /> consistently, regardless of the fund type or column in which they are presented As a result, an amount <br /> cannot be classified as restricted in one fund but unrestricted in another The fund balance disclosures <br /> will give users information necessary to understand the processes under which constraints are imposed <br /> upon the use of resources and how those constraints may be modified or eliminated The clarifications of <br /> the governmental fund type definitions will reduce uncertainty about which resources can or should be <br /> reported in the respective fund types <br />