Exploring Accounting and Democratic Governance: A Study Comparing a Norwegian and a Russian County

Abstract

Interpretations and explanations of experience that make consequences interpretable and actions imaginable are said to be given by accounts. Formal accounting systems used in economic, social and political institutions are seen as portraying their political realities. The purpose of this study is to explore connections and tensions between the realities portrayed in the accounting systems and the governance structures of local governments in two counties, one in Norway and one in Russia. The formal accounting and governmental systems of these two counties are described, analyzed and compared using accounting and democratic governance perspectives. The article ends with a discussion of interrelationships and tensions between accounting and democratic governance. Through comparing the democratic governing structures of these two counties with the accounting systems employed, three main conclusions are presented. Firstly, it is shown that principal–agent relations influence accounting procedures that symbolize democratic governance. Secondly, the accounting language applied does not portray local politicians. Thirdly, accounting norms do not reflect democracy and democratic governance. In summary, the study shows that even very formalized accounting offers flexibility by way of giving meaning to processes and structures in organizations characterized by strictly formalized structures.