England.  Change location

Intermediate financial accounting

Qualification dates
Start End

This module explores financial accounting in more depth following its introduction in Fundamentals of accounting (B124). The subject is introduced primarily through the structure of International Financial Reporting Standards (IFRS) requirements. You'll learn in some depth the framework for international financial accounting and how to construct and analyse financial statements that are IFRS-compliant. This is a practical module that is especially helpful if you wish to pursue a career in professional accounting.

What you will study

The aim of this module is to provide a firm grounding in IFRS-compliant financial accounting. After completing this module you should be able to construct reasonably complex, company (but not group) financial statements. The following topics will be covered in this module:

Unit 1: Introduction to financial accounting
  • Why are accounting standards needed.
  • Who reads financial statements and why.
  • The process of producing IFRS statements.
  • The conceptual framework.
Unit 2: Review and enhancement of B124
  • A review of the material in the module Fundamentals of accounting (B124).
  • Bank reconciliations and suspense accounts.
Unit 3: Assets
  • Accounting for non-current assets: recognition, derecognition and disclosure.
  • Calculating depreciation using a number of different approaches.
  • How to account for intangible assets; recognition, amortisation, revaluation and disclosure.
  • How to account for the impairment of assets.
  • Leases.
  • Accounting for current assets: inventories and receivables.
Unit 4: Liabilities and capital structure
  • How to account for payables.
  • Defining and accounting for provisions and contingent liabilities.
  • Accounting for share capital and share issues, including ordinary and preference shares, dividends, bonus and rights issues.
  • Objectives of financial statements.
Unit 5: Preparation of financial statements
  • Characteristics of IFRS financial statements; going concern, accrual basis, materiality, aggregation, consistency.
  • Required structure and content of financial statements; statement of financial position, statement of profit and loss and comprehensive income, statement of cash flow, statement of changes in equity, notes to the financial statements.
  • Dealing with estimates and judgements and changes in accounting policies.
  • The correction of errors and their disclosure.
  • Accounting for events that occur after the reporting period.
Unit 6: Cash flows
  • Constructing the statement of cashflow; the reconciliation of profit before tax to cash flow generated from operating activities, cashflows generated from investing and financing activities.
  • Considering the indirect and direct methods.
Unit 7: Interpretation of financial statements
  • Methods of interpreting financial statements.
  • How to calculate and interpret key financial ratios.

You will also have the opportunity to use professional accounting software package Zoho Books.

Professional recognition

This module forms part of the BSc (Hons) Accounting and Finance (R52) which has been granted exemptions by the Chartered Institute of Management Accountants (CIMA) towards its CGMA qualification.

Entry requirements

You must have successfully completed Fundamentals of accounting (B124) before you can register for B250.

Preparatory work

If you would like to prepare for this module, you may find that Companies and financial accounting, a free course on OpenLearn, is a helpful introductory resource.

What's included

You’ll have access to a module website, which includes:

  • a week-by-week study planner
  • module materials, including datasets to practice your analytical skills
  • audio and video content such as animations and screencasts
  • assignment details and submission section
  • online tutorial access.

Computing requirements

You’ll need broadband internet access and a desktop or laptop computer with an up-to-date version of Windows (10 or 11) or macOS Ventura or higher.

Any additional software, including any required to complete the online invigilated exam, will be provided or is generally freely available.

To join in spoken conversations in tutorials, we recommend a wired headset (headphones/earphones with a built-in microphone). You’ll need a webcam and microphone for the online invigilated exam.

Our module websites comply with web standards, and any modern browser is suitable for most activities.

Our OU Study mobile app will operate on all current, supported versions of Android and iOS. It’s not available on Kindle.

It’s also possible to access some module materials on a mobile phone, tablet device or Chromebook. However, as you may be asked to install additional software or use certain applications, you’ll also require a desktop or laptop, as described above.

Teaching and assessment

Support from your tutor

Throughout your module studies, you’ll get help and support from your assigned module tutor. They’ll help you by:

  • marking your assignments (TMAs) and providing detailed feedback for you to improve
  • guiding you to additional learning resources
  • providing individual guidance, whether that’s for general study skills or specific module content
  • facilitating online discussions between your fellow students, in the dedicated module forums.

Module tutors also run online tutorials throughout the module. Where possible, recordings of online tutorials will be made available to students. While these tutorials won’t be compulsory for you to complete the module, you’re strongly encouraged to take part.


The assessment details for this module can be found in the facts box.

This module includes a remote exam you will take at home or another suitable location. The exam will be invigilated online by another person – find out more about online invigilation.

If you have a disability

The OU strives to make all aspects of study accessible to everyone and this Accessibility Statement outlines what studying B250 involves. You should use this information to inform your study preparations and any discussions with us about how we can meet your needs.

Future availability

Intermediate financial accounting starts once a year – in October. This page describes the module that will start in October 2024. We expect it to start for the last time in October 2031.

Course work includes:

2 Tutor-marked assignments (TMAs)