Option #1: Government and Not-For-Profit Accounting Portfolio #1

Why do some accountants believe that it should offset the year-end inventory balance with a fund balance—non-spendable when no comparable fund balance is required for cash, taxes receivable, or most other assets?

Why is it difficult to develop accounting principles that are appropriate for governments within the same category (e.g., cities, counties) and even more difficult to develop them for governments within different categories?