Assessment Instructions • You are required to undertake a literature review including annotated bibliography. Detailed instructions: 1) Summarise the background of a contemporary accounting issue (from the assigned case study). 2) Identify sources relevant to the chosen accounting issue (e.g. journal articles, textbooks, websites etc.). At least three of these must be academic journal articles, but various sources may be used. You must reference each source as per KBS referencing guidelines. 3) Complete an annotated bibliography on three of the academic journal articles selected. The format should follow guidelines provided during week 11 content. 4) Outline the next steps for researching the issue including limitations and ethical issues. ASHTON HOTEL GROUP BACKGROUND AND BRIEF HISTORY Ashton Hotel Group (AHG) commenced operation in 1967, marking its entry into the bustling Sydney hotel market. Initially operating three hotels, AHG has grown to the extent that it is now a listed company operating 43 hotels spread across Australia. AHG has focused on delivering quality hospitality in a competitive environment by diversifying its available room sizes and styles covering a broad range of price points to cater to various customer segments. While AHG owns 11 of these properties, it operates the others under management rights, a model that has allowed for broader reach without the capital intensity of outright ownership. In 2019, AHG welcomed Loris Deschamps as its CEO. Deschamps brought with him extensive experience in hotel management, a vital asset for a company at AHG's stage. Although there has been higher than usual turnover of executives and property general managers under his leadership, AHG has seen a shift from aggressive expansion to a phase of consolidation. This has led to a focus on strengthening its existing assets, particularly across the lucrative east coast market of Australia. Today, AHG stands as a significant player in the Australian hospitality industry. The company's long held practice of operating under a single brand across all its properties has helped establish a consistent and recognisable identity in the market. CURRENT STRATEGIC PILLARS AND PERFORMANCE MEASURES Mission Statement To deliver consistent hospitality experiences across Australia by providing diverse, quality accommodations and services that cater to the varied needs of customers, while responsibly managing resources and fostering positive relationships with all stakeholders. Vision Statement AHG’s vision is to be Australia's most dependable and recognisable hotel group, known for its commitment to excellence, sustainability, and accessibility in the hospitality industry. AHG aims to responsibly enhance its portfolio and services to meet market expectations, creating value for guests and shareholders. Core Values AHG holds the following core values which are noted on the organisation’s website and highly visible to all employees: • Integrity and transparency • Sustainable Practices • Employee development and well-being • Community engagement Performance measures AHG evaluates performance by grouping its properties into regions (e.g., Sydney, Melbourne etc). Currently, return on investment (ROI) for the aggregate of properties in each region is used as the principal financial measure used. Traditionally AHG has not used non-financial measures but has introduced a sustainability measure based on self-reported energy efficiency and waste reduction calculations for each property, aggregated into regional results. CURRENT REMUNERATION PRACTICES Executives Executive remuneration is determined by AHG’s board after consultation with the CEO. The CEO has been responsible for several new hires and some recent terminations. The board is comfortable with this as Loris Deschamps has immense industry experience, AHG has focused on incentivising members of executive with generous bonuses linked to annual ROI results. Prior to hiring Deschamps, AHG utilised a remuneration committee for executive remuneration, but this was considered inoperable following the termination of Mickey Powers, the Chief Operating Officer in 2018. The termination of Mickey was litigated with a $800,000 settlement paid by AHG. Directors Director remuneration is set by external consultants and subject to approval by motion at the AGM each year. Increases in director remuneration have averaged 8% per annum over the past 4 years. Some shareholders have expressed concerns that current remuneration levels exceed industry averages substantially. BOARD OF DIRECTORS Within the first year of Loris Deschamps’ appointment, the AHG nomination committee was discontinued. The process for appointing new or additional directors involves an initial referral by Deschamps, followed by a consultation period of 2 months where directors are expected to perform their own due diligence prior to an appointment. Deborah Labrooy and Grant Svensson, two of