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
How to account for payables.
Defining and accounting for provisions and contingent liabilities.
Unit 5: Capital structure
Accounting for share capital and share issues, including ordinary and preference shares, dividends, bonuses and rights issues.
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, and notes to the financial statements.
Dealing with estimates, judgments, and changes in accounting policies.
The correction of errors and their disclosure.
Accounting for events that occur after the reporting period.
Unit 7: 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 8: 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 the professional accounting software package Zoho Books.
Entry requirements
You must have successfully completed Fundamentals of accounting (B124) (now discontinued) before you can begin BXI250.
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.
Teaching and assessment
Support from your tutor
You’ll get help and support from an assigned tutor throughout your module.
They’ll help by:
marking your assignments and offering detailed feedback to help you improve
providing individual guidance, whether that’s for general study skills or specific module content
guiding you to additional learning resources
facilitating online discussions between your fellow students in the dedicated forums.
Online tutorials run throughout the module. While they’re not compulsory, we strongly encourage you to participate. Where possible, we’ll make recordings available.
Assessment
Course work includes:
2 Tutor-marked assignments (TMAs)
Examination
This module includes an exam you'll take at home or another suitable location. The exam will be invigilated online by ProctorU, a US-based service with whom you must agree to third-party terms of service. You’ll have the opportunity to take a Mock Invigilated Experience (MIE) to familiarise yourself with the process ahead of the exam. Find out more about online invigilation.
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
Primary device – A desktop or laptop computer with at least 8 GB of RAM and a quad-core processor (2.4 GHz minimum speed). It’s possible to access some materials on a mobile phone, tablet or Chromebook; however, they will not be suitable as your primary device or for taking your online exam.
Peripheral devices – Headphones/earphones with a built-in microphone for online tutorials, plus an external webcam and a microphone for the online invigilated exam.
Operating systems – Windows 11 or the latest supported macOS.
Internet access – A broadband or mobile connection with at least 3 Mbps upload and download speed.
Browser – Google Chrome and Microsoft Edge are recommended. Mozilla Firefox and Safari may be suitable. You'll need to use Google Chrome with a supplied free extension for the online exam, or any alternative software that is module-specific.
Our OU Study app operates on supported versions of Android and iOS.
Software – Any additional software, including any required to complete the online invigilated exam, will be provided or is generally freely available.
If you have a disability
The OU strives to make all aspects of study accessible to everyone, and this Accessibility Statement outlines what studying BXI250 involves. You should use this information to inform your study preparations and any discussions with us about how we can meet your needs.
To find out more about what kind of support and adjustments might be available, contact us or visit our Disability support website.
Future availability
Intermediate financial accounting starts once a year – in October.
This page describes the module that will start in October 2027.
We expect it to start for the last time in October 2031.