GASB Offers Land Reporting Proposals
The Governmental Accounting Standards Board (GASB) issued a proposal related to the reporting of land and other real estate investments by endowments. Current accounting standards require endowments to report those investments at historical cost, although other entities that exist for the purpose of generating income—such as pension plans—report them at their fair value.
The proposed Statement would require permanent and term endowments and permanent funds to report the fair value of land and other real estate held as investments and the changes in that fair value. They also would disclose the methods and significant assumptions employed to determine fair value, as well as other information that they currently present for other investments reported at fair value.
The requirements of the proposed Statement would be effective for financial statements for periods beginning after June 15, 2008.