Final answer:
It is false that public and private colleges account for split-interest agreements in the same way. Public colleges follow governmental accounting standards, while private colleges adhere to FASB non-profit accounting standards, leading to differences in the financial reporting of these agreements.
Step-by-step explanation:
The statement that public and private colleges account for split-interest agreements in the same way is false. Split-interest agreements are a type of giving vehicle that benefits both non-profit organizations and other beneficiaries, which can include donors or their designated individuals. These agreements can take various forms, such as charitable remainder trusts, charitable lead trusts, and pooled income funds.
Accounting standards for these agreements can differ depending on the type of institution. Public colleges, which operate under government entities, follow governmental accounting standards, while private colleges adhere to non-profit accounting standards as set by the Financial Accounting Standards Board (FASB).
For instance, public institutions typically follow the accounting guidelines in the Governmental Accounting Standards Board (GASB) statements, whereas private institutions must comply with FASB accounting standards. This distinction can lead to differences in how the agreements are recorded and reported in financial statements.