Final answer:
GASB standards require endowments with investments in real estate to report those assets at fair value rather than historical cost.
Step-by-step explanation:
The statement is false. GASB (Governmental Accounting Standards Board) standards require that endowments with investments in real estate report those assets at fair value rather than historical cost.
Reporting assets at fair value means that they are reported at their current market value, which can change over time based on market conditions. This provides a more accurate representation of the value of the assets.
For example, if an endowment invested in real estate has appreciated in value, reporting it at fair value would reflect the higher market value of the asset.