SCB, July 2000

The U.S. government’s assets in the Panama Canal Commission were revalued to reflect prices of the current period. The revaluation affected the transaction value of the transfer of the U.S. assets to the Republic of Panama in the fourth quarter of 1999. The revaluation also affected the value of the assets in the U.S. international investment position from October 1, 1979, when the Panama Canal Commission was created, to December 31, 1999, when the United States last owned the assets. The revaluation converted the historical cost of the fixed assets to a current-cost (replacement-cost) basis, consistent with the requirements of economic accounting.