What is the purpose of reporting fund balance in five classifications? What is the difference between restricted fund balance and assigned fund balance?

A fund balance refers to the difference between the assets and liabilities of a government fund. If the stakeholders have to make appropriate decisions using information about government funds, a fund balance is the main requisite. Thus, the GASB has intervened in preparing a standard way for reporting the fund balance. A part of this standard is introducing the five classifications for the fund balance. The five classifications are: non-spendable balance, restricted balance, committed balance, assigned balance, and unassigned balance.