Claire is an accountant who runs her own accountancy practice and employs five auditors. She has become friends with the finance director of one of her clients. In addition, 60% of the practice fees relate to work for another of her clients.

Required

Discuss the ethical dilemmas that Claire may face. What is Current Purchasing Power (CPP) accounting and why does the monetary capital adjustment arise under this method?

What are construction contracts and how are the concepts of relevance and reliability applied to accounting for construction contracts.