Statement: Implementation of GASB 52

GASB 52 establishes consistent standards for the reporting of land and other real estate held as investments.  It requires endowments to report their land and other real estate investments at fair value.  Institutions are also required to report the changes in fair value as investment income and to disclose the methods and significant assumptions used to determine fair value, as well as any other information that is currently presented for other investments reported at fair value.

Scope and Applicability

This Statement establishes standards for accounting and financial reporting for land and other real estate held as investments by endowments.  Endowments include permanent and term endowments.  This Statement does not apply to quasi-endowments. 

Land and Other Real Estate Held as Investments by Endowments

Land and other real estate held as investments by endowments should be reported at fair value at the reporting date.   Changes in fair value during the period should be reported as investment income. 

Endowments should apply the applicable disclosure provisions in GASB 31 (paragraph 15) to their land and other real estate held as investments.  These disclosure requirements include:

  • The methods and significant assumptions used to estimate the fair value of investments, if that fair value is based on other than quoted market prices.
  • The policy for determining which investments, if any, are reported at amortized cost.
  • For any investments in external investment pools that are not SEC-registered, a brief description of any regulatory oversight for the pool and whether the fair value of the position in the pool is the same as the value of the pool shares.
  • Any involuntary participation in an external investment pool.
  • If an entity cannot obtain information from a pool sponsor to allow it to determine the fair value of its investment in the pool, the methods used and significant assumptions made in determining that fair value and the reasons for having had to make such an estimate.
  • Any income from investments associated with one fund that is assigned to another fund.

Effective Date

This Statement is effective beginning FY 2008-09.  In the implementation period, changes made to comply with this Statement should be treated as prior period adjustments and financial statements presented for the periods affected should be restated.  If restatement is not practical, the cumulative effect of applying this Statement should be reported as a restatement of beginning net assets.  The financial statements should disclose the nature of this restatement and its effect.