General information:

•    Completion of this assignment is compulsory. The assignment should be submitted as a word document in electronic form only using the ‘Turnitin’ assessment portal on  Canvas. No submissions will be accepted via email.

•    Due date: 4pm 25 August 2022 (Thursday, Week 4). If you submit after the due date, a late penalty of 5% per 24 hour period, or part thereof, including weekends, will be applied. Furthermore, as noted in your unit of study outline, any assignment submitted beyond the closing date of 4pm 4 September 2022, will result in a mark of zero.

•    Responses will be considered on their ability to present relevant information and develop well  supported  arguments. Do not submit a series of dot points. Your response should be presented in an extended narrative format.

•    To  provide  students with  feedback, your assignment will be graded against the assessment criteria included in  Appendix I (page 5) to this assignment.

Format:

•   12-point font, Times New Roman, paragraphs formatted with 1.5 line spacing, and with margins of 2.5cm. This assignment must be done in ‘Word’ or other text format  program.    Do  not  use  ‘Excel’  or  other  non-text  programs  to  do  this assignment.

•   Following the font and spacing required per the preceding dot point, your responses must not exceed 2 pages in total, including any footnotes, appendices and images. You may also provide any bibliography/reference list as a further 3rd separate page. As such, you may therefore submit up to 3 pages; 2 pages of text, and a separate

page for the bibliography. Any work after these allowed pages will not be marked. Failure to comply with these requirements will incur penalties. It is each student’s responsibility to ensure these requirements are complied with.

•   Your assignment must be appropriately and properly referenced using the 7 t h American  Psychological Association referencing style (or APA 7th as it is more commonly known). The University of Sydney library provides helpful guidance on using APA style referencing,

http://libguides.library.usyd.edu.au/c.php?g=508212&p=3476096

You can also refer to Other Resources on the ACCT 3011 Canvas site for additional guidance.

•   In the footer ofyour word document you must show your SID and include page numbers. For example,  ‘123456789  … ..page  1” .   Other guidance on how to submit  using  Turnitin  is provided  in  the  assessment  folder  on  Canvas.  The filename of your submitted assignment should also be your SID. For example, “123456789.doc” .

•   As a student of the University, you are responsible for taking part in your education in an honest and authentic manner.  It is therefore expected that you take extra care to ensure that there are no breaches of academic honesty.  All assignments will be manually and electronically checked for plagiarism (copying).   Any perceived breaches of academic honesty will be referred to the Office of Educational Integrity for further investigation and penalised if verified.  You can read more information on what plagiarism is and how to avoid plagiarism from the University link:

https://sydney.edu.au/students/academic-dishonesty.html

•   All  sources  of support  for  the  assignment  must  be  acknowledged.  Failure  to acknowledge  such  support  may  potentially  breach  the  University’s  academic honesty requirements.

•  If necessary,  students  are  advised to refer to the  special  consideration  advice contained  in  the  Administration  Manual  for  Students  on  the  Faculty  website: https://business.sydney.edu.au/students/policy.

Grade Descriptors:

Due  to  the  specific  nature  of this  assignment,  students  are  advised  that  generic submissions will not score high marks. The following can at best be considered as a general indication, assuming consistency in quality of component parts.

High Distinction The attempted solution substantially exceeds minimal requirements and  is  consistent  and  coherent.  It  excels  in  substantive  content  and  demonstrates professional  communication  skills.  It  reflects  consideration  of  your  own  well- developed perspectives and is framed in your own words.

Distinction The attempted solution substantially exceeds minimal requirements across most tasks and through effective communication demonstrates a strong understanding of the accounting issues and relevant accounting requirements. Good development of your own perspectives.

Credit The attempted solution exceeds minimal requirements across most tasks, but is less well developed, less framing in your own words (e.g. dull reproduction of slabs of text from others), some errors or omissions in application.

Pass A minimal standard is reached across various aspects of the task.        Fail The task is not completed. The solution does not reflect an appropriate understanding of the question/assigned task. Poorly developed responses.

Questions about the Assignment:

Students are required to post all assignment queries to the Individual Assignment Forum on Canvas. This  is the required form of communication as it  provides  an opportunity  for  all  students to have access to the same information. Unit of Study teaching staff will not answer questions during lectures, tutorial or in consultation times.

The assignment

Background:

VegLux Ltd (“VegLux”) is a fruit and vegetable retail business, which has issued 100 ordinary shares. As at 30 June 2022, 40 of those shares were held by VegPro Ltd (“VegPro”), 40 were held by VegWorks Ltd (“VegWorks”), and the remaining 20 were

held by two shareholders with 10 shares each.

Note the following additional details:

1.   VegPro is a fruit and vegetable grower, owning several of its own farms. There is a contractual agreement between VegPro and VegLux, stating that VegPro has exclusive rights to sell its fresh produce to VegLux.

2.   VegWorks is a fruit and vegetable process factory that manufactures salad, juice and jam products. VegWorks specialises in taking online orders and has its own network to deliver products to households in NSW regions.

3.   Until 30 June 2022, VegLux’s Board of Directors had seven (7) members. Details are provided as follows:

a.   At 30 June 2022, four (4) of those board members were also on the board of VegPro. One of those 4 was also the Chief Executive Officer (CEO) of VegLux. Another of those 4 board members (George Lux) retired on 18th July 2022, the day when he turned 67. Neither company has found a replacement for George yet.

b.   At 30 June 2022, the other three (3) members of VegLux’s board of directors, were also directors on the board of VegWorks.

4.   Due to the global pandemic and consequential closure of retail stores, VegLux has made substantial losses in FY2021. However, by working closely with VegWorks, VegLux has  successfully developed  an  online  order and home delivery business that became its dominate revenue source in FY2022.

Required:

You are the financial accountant at VegPro Ltd. Write a report to VegPro Ltd’s Board of Directors that assesses whether VegLux Ltd should be regarded as a subsidiary as at

30 June 2022 in accordance with the requirements ofAASB 10: Consolidated Financial Statements.