This study aimed to determine whether financial analysts reflect the effects of accounting changes in their forecasts of accounting information, including sales, earnings, and earnings per share, when individual firms change their accounting methods. A total of 383 listed corporations with December fiscal year-ends for which financial analyst forecast data were available during 1988–1989 were selected as the sample. The analysis results showed that the forecast error rate of financial analysts for firms that changed accounting methods was greater than that for non-changing firms; for firms with accounting changes, the forecast error in the year of the accounting change was greater than in the year immediately preceding the change; and the impact of accounting changes on net income was found to be a determinant of financial analysts' forecast errors. The findings of this study empirically demonstrate, at a time when the liberalization of capital markets demands urgent improvement in the forecasting ability of financial analysts, that financial analysts must sufficiently account for the effects of accounting changes when forecasting accounting information. Additionally, by helping general investors understand the impact of accounting changes on financial analysts' forecast errors, this study can assist them in making more rational investment decisions based on the forecast information provided by financial analysts.