Society Takes Popular Show on the Road

Society Takes Popular Show on the Road
Statewide, Journalists Benefiting From Financial Statements Course

By Sanjay Paranandi, Public Relations Specialist

Over the last few years, the New York State Society of CPAs has successfully hosted free seminars for New York City–based journalists that are designed to help them understand financial statements.

The seminar, split into three sessions, covers the basics of how to read financial statements, including reading balance sheets and income statements, and an introduction to financial analysis. The seminars have helped journalists in their work and strengthened the relationship between the media and the Society.

The seminar has been such a hit with reporters that the Society decided to take the show on the road this year.

Members of the Rochester Chapter held sessions for reporters from the Rochester Democrat and Chronicle who were interested in learning more about government financial statements. (The Society tailors the course according to the interests of the attending reporters.)

Led by Michele Mark Levine, a director with the New York City Office of Management and Budget, the seminar took place at the Democrat and Chronicle’s offices and focused on how to read government financial statements. Levine oversees the department’s accounting services and grant monitoring, and advises Bloomberg administration officials on governmental generally accepted accounting principles (GAAP), which, by statute, guide the city’s budgeting process.

“Our quest is to learn more about the financial records that can help tell important stories about local and state government,” Jim Herman, of the Democrat and Chronicle, said. “That knowledge and expertise is necessary to avoid allowing ourselves to be led, or misled, by the financial experts.”

More than 25 reporters attended, representing the Democrat and Chronicle and other Gannett newspapers, including the Ithaca Journal, the Binghamton Press & Sun-Bulletin and the Utica Observer-Dispatch.

Levine set out to demystify government financial statements to help reporters become more comfortable utilizing GAAP-based basic financial statements. She explained the significant changes recently made to reports by the Governmental Accounting Standards Board.

“It is virtually impossible for a journalist on a tight deadline to thoroughly understand the complex financial and budgetary implications of the myriad issues they must report on unless they have some background understanding of a government’s financial and budgetary processes and reporting,” Levine said. “I believe the NYSSCPA performs a vital public service by providing a forum wherein journalists—and ultimately the taxpayers, voters and other public stakeholders whom they inform—can gain a better understanding of government.”

In another presentation, Bill Dresnack and Michelle Cohen helped 10 journalists from the Rochester Business Journal learn the basics of reading financial statements. Reporters quizzed the speakers on better ways they can read financial statements to more effectively present critical information to their readers. Dresnack and Cohen answered questions about specific areas of accounting and reporting, including earnings per share, effects of restructuring, and finding and understanding red flags.

“Our entire staff found the session useful and interesting,” Business Journal Managing Editor Mike Dickinson said. “We will use the information as we cover companies and issues on a weekly basis, and in how we frame stories and present information for our readers.”

Dresnack said the sessions provide a great opportunity for the Society and the accounting profession to hear directly from financial statement users about the challenges they face in interpreting statements.

“I strongly encourage other chapters and practitioners to develop or support the dialogue between the press and the profession,” Dresnack said. “Considering the massive business failures blamed at least in part on the external auditors, it’s important for us to do what we can in the name of full disclosure.”

If your chapter is interested in hosting one of these events and you would like further details, please contact the author, NYSSCPA public relations specialist, at 212-719-8364 or sparanandi@nysscpa.org.