Undergraduate

Financial accounting

On this page

• What you will study
• Entry
• If you have a disability or additional requirement
• Study materials
• Teaching and assessment
• Professional recognition
• Students also studied
• Future availability

This is the course for you if you want a route into the accountancy profession or need to gain fundamental accounting skills for a management or other role. You will gain an understanding of how financial statements are prepared and develop the skills to prepare financial statements. You will explore differences in financial accounting for different businesses, building an understanding of the frameworks underpinning accounting and audit practice. We strongly recommend that you study this course before Management accounting (B292), but both courses can be studied independently.

Course facts

Register for the course

This course is available for study in the countries shown. Fees and financial support may vary by country.

What you will study

Financial accounting will help you develop an understanding of the role and importance of accounting in the various types of business and other organisations. It covers the accounting regulatory framework in the UK and EU; accounting in the context of international financial and capital markets; and the qualitative characteristics of financial accounting information, accounting concepts and principles. This course uses the terminology of The International Financial Reporting Standards (IFRS).

You will learn how to:

• prepare financial statements based on application of accounting concepts, regulations and principles
• identify, classify, measure and summarise the elements of financial statements applying accounting principles and concepts
• explain and interpret the purpose, form and content of the three main financial statements; income statement, balance sheet and cash flow statement
• use simple mathematics for the purpose of calculations in bookkeeping, accounting and preparing/analysing financial statements, including basic ratio analysis.

During the course you will:

• practise recording transactions and events
• maintain accounting records manually
• gain some familiarity with computerised accounting software
• prepare periodic financial statements for sole traders, partnerships, non-profit organisations and single-entity private and public limited companies
• develop your skills in explaining, analysing and applying the mechanism of double-entry bookkeeping and the accounting cycle.

By the end of the course you will be able to:

• review and illustrate the purpose, context and environmental influences and constraints on financial accounting and business practices
• explain and evaluate the need for ethics in the behaviour of accountants and the need for independent auditing in the reporting process of public and large enterprises
• explain and review the relations between corporate governance, auditing and financing.

Vocational relevance

If you pass both Financial accounting (B291) and Management accounting (B292) you will be awarded the Professional Certificate in Accounting.  Please note that this Certificate will not qualify you as an accountant. To obtain that status you will need to pass the qualifying examinations of a professional accounting body. See Professional recognition below for further information.

Entry

This is a Level 2 course and you need to have a good knowledge of financial accounting, obtained either through Level 1 study with the OU or by doing equivalent work at another university. Ideal preparation for this course would be our Level 1 course Introduction to bookkeeping and accounting (B190).

If you have any doubt about the suitability of the course, please contact our Student Registration & Enquiry Service.

If you have a disability or additional requirement

Written transcripts of any audio components and Adobe Portable Document Format (PDF) versions of printed material are available. Because of the significant amount of tabular material, students with severe visual impairment or those who rely on screen reading software may need to access sighted assistance in their study of this course. Please note that assistance will need to be sorted out well in advance of the course start date. Adobe PDF components may not be available or fully accessible using a screen reader. Other alternative formats of the study materials may be available in the future. Our Services for disabled students website has the latest information about availability.

This course involves calculations that most students may do using a pen and paper, but these activities may also be done using a spreadsheet or calculator. The materials will contain formats and layouts found in accounting reports such as balance and income statements which will be available electronically as tables. The course team is actively working to make the course as accessible as possible.

If you are a new student, or new to courses using a computer or the internet, you will need to inform us of your particular needs as soon as possible, as some of our support services may take several weeks to arrange. Details of how to do this and our range of support services are described in our publication Meeting Your Needs.

You can also find information about accessible study materials, financial support and the Disabled Students' Allowance, equipment and other services, on our Services for disabled students website. It also includes our contact details for advice and support both before you register and while you are studying.

Study materials

What's included

Seven printed texts and a website with resources to support your learning. An introductory version of Sage accounting software on CD – a software programme you may encounter when you progress to professional accountancy training.

You will need

A calculator will be useful and will be required for Management accounting (B292). Spreadsheet software is useful but not essential.

Computing requirements

This course includes online computer activities – you can access these using a web browser that can play Flash and Shockwave. Some of your course software will be provided on disk.

You will need internet access and a computer. If you have purchased a new Windows computer since 2005 it should meet your course computing requirements. Check our Technical Requirements section if your computer is older than this or is otherwise unusual. Please note that you cannot use an Apple Mac or Linux computer unless it is running Windows using Boot Camp or similar dual-boot system.

Teaching and assessment

Support from your tutor

You will have a tutor who will help you with the study material and mark and comment on your written work, and whom you can ask for advice and guidance. There will also be four tutorials and one day school which you are strongly encouraged to attend. Where tutorials and day schools are held depends on the distribution of students taking each course.

Contact our Student Registration & Enquiry Service if you want to know more about study with The Open University before you register.

Assessment

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

You will be expected to submit your tutor-marked assignments (TMAs) online through the eTMA system unless there are some difficulties which prevent you from doing so. In these circumstances, you must negotiate with your tutor to get their agreement to submit your assignment on paper.

You will not have access to a computer or spreadsheets for the examination. You will be expected to use only a calculator.

Professional recognition

If you pass both Financial accounting (B291) and Management accounting (B292) you will be awarded the Professional Certificate in Accounting. 

1. The Chartered Institute of Management Accountants (CIMA) - Exemptions granted to successful Professional Certificate in Accounting students from papers C1, C2, C3, C4 and C5.
2. The Association of Chartered Certified Accountants (ACCA) - Exemptions granted to successful Professional Certificate in Accounting students from papers F1, F2 and F3.
3. The International Association of Book-keepers (IAB) - Students successful on B291 or The professional Certificate in Accounting will be eligible for IAB membership.
4. The Association of International Accountants (AIA) - Exemptions granted to successful graduates of The Professional Certificate in Accounting from Paper 1 - Financial Accounting 1, Paper 2 - Business Economics and Paper 3 - Management Accounting in Module A, and Paper 10 - Business Management in Module D

Students also studied

Students who studied this course also studied at some time:

• Introduction to bookkeeping and accounting (B190)
• Management accounting (B292)
• An introduction to business studies (B120)
• You and your money: personal finance in context (DB123)
• Business functions in context (B203)

Future availability

The details given here are for the course that starts in May and November 2012. We expect it to be available twice a year.

Fees 2012

See fees and funding options for study from September 2012.

Study explained

Financial support

- find out if you qualify for support with your fees with our eligibility checker.

Study explained

- all you need to know about distance learning with the OU.

Student Reviews

As a qualified self employed book-keeper I expected to sail through the course and the exam. However, I found some ...
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