The correct answer is: D. all types of business undertakings.
Accounting Standard-6 (AS-6) is an Indian accounting standard issued by the Institute of Chartered Accountants of India (ICAI). It deals with the accounting treatment of depreciation. The standard is applicable to all types of business undertakings, irrespective of their size or nature of business.
The objective of AS-6 is to prescribe the accounting treatment of depreciation for the purpose of preparing financial statements. The standard requires that depreciation be provided on all fixed assets, except land, in a systematic and rational manner. The amount of depreciation to be provided should be based on the estimated useful life of the asset and its residual value.
AS-6 also provides guidance on the disclosure of information about depreciation in the financial statements. The standard requires that the following information be disclosed in the financial statements:
- The basis on which depreciation is provided;
- The rates of depreciation used;
- The amount of depreciation charged for the period; and
- The accumulated depreciation at the end of the period.
AS-6 is an important accounting standard that should be followed by all types of business undertakings. The standard provides guidance on the accounting treatment of depreciation and the disclosure of information about depreciation in the financial statements.
Here is a brief explanation of each option:
- Option A: Companies listed on a recognized stock exchange. This option is incorrect because AS-6 is applicable to all types of business undertakings, irrespective of their size or nature of business.
- Option B: Companies engaged in manufacturing business. This option is incorrect because AS-6 is applicable to all types of business undertakings, irrespective of their size or nature of business.
- Option C: Companies engaged in manufacturing and trading business. This option is incorrect because AS-6 is applicable to all types of business undertakings, irrespective of their size or nature of business.
- Option D: All types of business undertakings. This option is correct because AS-6 is applicable to all types of business undertakings, irrespective of their size or nature of business.