Purpose – This paper aims to extend the research into company financial forecasts by modelling naïve earnings forecasts derived from normalised historic accounting data disclosed during Australian initial public offerings (IPOs). It seeks to investigate naïve forecast errors and compare them...

This paper examines the controversy surrounding the use of the Inverted‐Sum‐Of‐Years‐Digits (ISOYD) method of goodwill amortisation and events leading to its banning by the Australian accounting regulatory bodies. Companies using the method claimed that a prohibition would reduce their...