Accrual accounting is the standard for governments in Canada. It is also the standard for businesses in Canada. While we don't set those standards—they are set independently by the Accounting Standards Board or the Public Sector Accounting Board—I think there are fairly well accepted reasons why accrual accounting gives a more accurate picture, over time, of the financial results of either an enterprise or a government. Measuring cash is important for a number of reasons, not the least of which is appropriate control. We have spent much of the time here focusing on cash because we're looking at economic stimulus. But generally, for showing a proper picture of revenue and expense, or assets and liabilities, accrual is thought to be more accurate. Cash can be very lumpy and can distort the picture in a particular period. Up until 2003, the governments in Canada, the Government of Canada particularly, used a modified cash approach. But we have now moved to accrual because the theory is that it provides a more accurate picture over time.
On February 10th, 2009. See this statement in context.