This thesis investigates the relationship between accounting conservatism and analyst forecast errors in Australia before and after the mandatory adoption of the International Financial Reporting Standards (AIFRS). It is motivated by the debate on the advantages and disadvantages of international accounting harmonization. Using different aspects of accounting conservatism, this study examines three research questions. Firstly, the relationship between accounting conservatism in Australian listed firms and analyst forecast errors is examined. Second, the level of conservatism in the financial reports of Australian firms is examined to see if IFRS induces firms to be more or less conservative. Lastly, the relationship between conservatism and forecast errors after the adoption of AIFRS is examined to see if it has changed. Results of the analysis show that there is a positive relationship between forecast errors and conservatism before AIFRS. However, in the periods after AIFRS adoption, there has been a reversal in the relationship such that there is a negative association between forecast errors and conservatism. Specifically, it is found that conservatism reduces the absolute value of forecast errors, indicating that conservatism in the post-AIFRS periods helps analysts to predict earnings more accurately. Sensitivity tests reveal that the findings are robust to alternative measures of conservatism.