Biological assets and accounting treatments under Circular 99/2025/TT-BTC

Abstract

Biological assets are highly specialized items posing significant risks in corporate accounting and auditing due to biological transformation and market volatility. Historically, the lack of a dedicated accounting framework led to inconsistent recognition, undermining financial statement transparency and increasing the risk of material misstatements. Circular 99/2025/TT-BTC marks a pivotal shift by establishing the first dedicated accounting regime for biological assets in Vietnam. This article systematically analyzes the Circular's provisions on recognition, measurement, accounting and presentation, utilizing qualitative research and policy analysis compared with international practices. Furthermore, it evaluates audit risks arising during the application of these new regulations. The results show that while the Circular standardizes practices, certain gaps remain that could affect audit quality, necessitating further technical guidance.