The correct answer is: D. AS-13
AS-13 is the accounting standard for depreciation accounting in India. It was issued by the Institute of Chartered Accountants of India (ICAI) in 1991. The standard prescribes the principles and procedures for determining the depreciation of fixed assets.
AS-13 defines depreciation as the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount is the cost of the asset, or other amount substituted for cost, less its residual value. The useful life is the period over which an asset is expected to be used by the enterprise for the purpose for which it was acquired.
The standard requires that depreciation be calculated on a systematic and rational basis. The method of depreciation should be selected based on the nature of the asset and the way in which it is used by the enterprise. The most common methods of depreciation are the straight-line method, the reducing-balance method, and the sum-of-the-years’-digits method.
AS-13 also requires that depreciation be reviewed at least annually and adjusted if necessary. The adjustment should be made to reflect any changes in the estimated useful life or residual value of the asset.
The standard is applicable to all enterprises that prepare financial statements in accordance with Indian accounting standards.
The other options are incorrect because they are not accounting standards for depreciation accounting.