Ordinary income derived from investments, receivables, and the like is accounted for in the fund owning such assets, except for income derived from investments of endowment and similar funds, which income is accounted for in the fund to which it is restricted or, if unrestricted, as revenues in unrestricted current funds. 2.4 Investments Temporary investments and endowment fund investments in corporate stocks and marketable bonds are recorded at market value. Mortgages held for investment by the endowment fund are recorded at book value representing principal amounts due. Investments in real estate are recorded at book value. 2.5 Net Investment in Plant Plant assets are stated at actual or estimated cost at date of acquisition.
Construction is capitalized as expended and reflected in net investment in plant.
No provision for depreciation of plant assets is made in the University's financial statements. 2.7 Funds Held in Trust by Others Assets of funds held by trustees for the benefit of the University are not reflected in the balance sheet. The University has irrevocable rights to all or a portion of the income of these funds. However, assets of the funds are not under the management discretion of the University according to the trust agreements. 2.8 Affiliated Foundations Assets of affiliated foundations, which are separately incorporated and managed by their own boards, are not included in the University's financial statements.