GASB issued Statement no. 52, Land and Other Real Estate Investments Held as Investment by Endowments. This statement requires that endowments report their land and other real estate investments at fair value, improving the quality of financial reporting and creating reporting consistency among similar entities. The statement requires governments to:
Report the changes in fair value as investment income.
Disclose the methods and significant assumptions employed to determine fair value and provide other information currently presented for other investments reported at fair value.
The statement will become effective for periods beginning after June 15, 2008, but earlier implementation is encouraged. For more information, go to www.gasb.org.