Accounting and reporting practices of Mississippi catfish producers: An empirical stud

The Mississippi catfish farming industry has grown at an annual rate of approximately 30% over the past ten years culminating in catfish sales of over $210 million in 1988. Even though the industry is established, there is a void of accounting and tax information regarding catfish farming entities. Most of the industry accounting practices are transmitted verbally from party to party with little written authoritative documentation.;The objectives of this dissertation were (1) to determine the accounting and reporting practices currently used by catfish farmers and the degree of compliance, where applicable, with generally accepted accounting principles, (2) to determine all attitudes of certified public accountants (CPAs) towards recommended generally accepted accounting principles, and (3) to examine the tax accounting conventions of catfish farming entities.;To accomplish these objectives a survey was conducted of CPAs practicing in the aquacultural industry. A mail survey questionnaire was mailed to 138 CPAs practicing in the Delta region of Mississippi. The CPAs responding to the questionnaire represent 62% of Mississippi's catfish producers. Data collected and compiled from complete questionnaires was analyzed using frequency analysis and association tests. The results of the study indicate that 65% of Mississippi catfish farming entities surveyed use the cash method of accounting for financial reporting and 99% use the cash method for tax reporting purposes. Further, a majority of the CPAs responding to the questionnaire indicated that the cash method of accounting was the most favorable accounting practice available to catfish farming entities considering its simplicity and the unique nature and characteristics of catfish farming. However, though a preponderance of cash-basis accounting is indicated, this study reveals that a diversity of financial and income tax accounting treatments and practices are currently utilized by catfish producers for certain transactions and events peculiar to aquacultural production.;This dissertation has implications for CPAs practicing in the aquacultural industry, creditors and lenders, and aquacultural farming entities. This study is a first step toward developing a body of knowledge concerning the financial aspects of aquacultural production. This should aid decision makers in the proper and efficient allocation of capital and other resources.