First Delta bank

In recognizing the changing environment of the accounting profession, “The CPA Vision Project” of the AICPA speculates that an historical emphasis on facts and numbers may prove to be a major stumbling block to the profession's survival. The project's White Paper recognizes that the accountants of today and tomorrow must “step out of the box” and provide their organizations and clients higher levels of analytical advice and business strategic planning. The Federation of Schools of Accountancy (FSA) Position Statement on the Role and Responsibilities of the University Professoriate, revised August 1997, http://www.ramsearch.co.cardweb.com/cardtrack, specifically references the need to “make connections across disciplines and to place specialties in a larger context” in accounting research and education. That accounting professionals draw on diverse disciplines in practice should be reflected in the educational model. This interdisciplinary case deals with financial accounting and analysis in the credit card industry. The case has several objectives. First, it introduces students to practices in the credit card industry, which is becoming very important in the e-commerce age. Second, it provides students with an opportunity to analyze financial statements specifically targeting profitability concerns and to use that analysis to make informed strategic decisions. Third, it reinforces basic concepts of asset securitization accounting, such as accounts receivable and loan securitizations, as well as introduces students to off-balance-sheet accounting issues. Fourth, it promotes critical thinking by asking students to decide what action to take when several options are available. Finally, it helps students develop research skills by using and/or interpreting Statements of Financial Accounting Standards No. 91 and No. 105 as well as Internet searches and library resources. This case can be used at the undergraduate level, in MBA programs, and in executive education programs.