"... Under the accounting system used before Canada adopted full accrual accounting in 2002-03, net debt was always exactly the same amount as the accumulated deficit. Why? Because under the former accounting system, only financial assets were counted as assets. Many people, including politicians, journalists and bank economists, have not understood the effect of the changeover to full accrual accounting and still believe that net debt is equal to the accumulated deficit - and that an annual surplus is the same as a reduction in net debt. Not anymore..."

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