Final answer:
GASB standards require endowments to report real estate investments at fair value, which is the price achievable in a current transaction between willing parties.
Step-by-step explanation:
GASB standards require that endowments with investments in real estate report those assets at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This accounting practice is in contrast to historical cost, which is the original monetary value of an asset, and the lower of cost or fair value method, which requires assets to be reported at the lesser amount when comparing cost and fair value.