NEWS RELEASE 03/23/07
GASB Proposes Standards for Reporting Land and Other Real Estate Held as Investments
Norwalk, CT, March 23, 2007—The Governmental Accounting Standards Board (GASB) today 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.
A copy of the proposal, entitled Land and Other Real Estate Held as Investments by Endowments, may be downloaded from the GASB’s website at www.gasb.org. The Board is seeking written comments on the proposal by June 29, 2007. Individuals or organizations that want to provide written comments may do so via email to firstname.lastname@example.org, Project No. 3-21, or via regular mail to:
Governmental Accounting Standards Board
401 Merritt 7
PO Box 5116
Norwalk, CT 06856-5116
About the Governmental Accounting Standards Board
The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board’s diverse constituency, including preparers and auditors of government financial statements, users of those statements, and members of the academic community. More information about the GASB can be found at its website www.gasb.org.