The correct answer is: C. AS-24.
AS-24 is the Accounting Standard on Intangible Assets. It was issued by the Institute of Chartered Accountants of India (ICAI) in 2004. The standard provides guidance on the accounting for intangible assets, including their recognition, measurement, and disclosure.
Intangible assets are non-monetary assets that lack physical substance. They are identifiable and have the potential to generate future economic benefits. Examples of intangible assets include goodwill, patents, trademarks, and copyrights.
AS-24 requires that intangible assets be recognized when they meet the following criteria:
- The asset is identifiable.
- The asset is controlled by the entity as a result of past events.
- It is probable that future economic benefits associated with the asset will flow to the entity.
- The cost of the asset can be reliably measured.
Intangible assets are measured at cost, less any accumulated amortization and impairment losses. Cost includes the purchase price of the asset, as well as any directly attributable costs of bringing the asset to its working condition for its intended use.
Intangible assets are amortized over their useful lives. The useful life of an intangible asset is the period over which it is expected to generate economic benefits. The useful life of an intangible asset is determined based on factors such as the expected use of the asset, the expected technological obsolescence of the asset, and the expected legal and regulatory environment in which the asset will be used.
Intangible assets are subject to impairment testing at least annually. Impairment testing is the process of determining whether the carrying amount of an intangible asset is recoverable. If the carrying amount of an intangible asset is not recoverable, the asset is written down to its recoverable amount.
AS-24 also provides guidance on the disclosure of intangible assets. The disclosures required by AS-24 include the nature and carrying amount of intangible assets, the useful lives of intangible assets, and the amortization methods used for intangible assets.
The other options are incorrect because they are not accounting standards issued by the ICAI.