The correct answer is option 'C': Institute of Chartered Accountants of India (ICAI).

Explanation:
Accounting standards are a set of principles, guidelines, and procedures that provide a framework for the preparation and presentation of financial statements. These standards ensure consistency, transparency, and comparability in financial reporting. In India, accounting standards are issued by the Institute of Chartered Accountants of India (ICAI), which is a statutory body established under the Chartered Accountants Act, 1949.

The ICAI is responsible for setting accounting standards in India through its Accounting Standards Board (ASB). The ASB comprises a group of experts and professionals who develop and issue accounting standards in line with international best practices and the requirements of Indian law.

The process of issuing accounting standards in India involves several stages:

1. Identification of the need for a new or revised accounting standard: The ASB identifies the areas where new or revised accounting standards are required. This can be based on changes in the business environment, emerging accounting issues, or updates to international accounting standards.

2. Drafting of the accounting standard: Once the need for a new or revised accounting standard is identified, the ASB drafts the standard. This involves extensive research, consultation with stakeholders, and consideration of international accounting standards.

3. Exposure draft: The draft accounting standard is then published as an exposure draft, which is made available for public comments and feedback. This allows stakeholders, including companies, auditors, and regulators, to provide their inputs and suggestions.

4. Finalization of the accounting standard: After considering the feedback received during the exposure draft stage, the ASB finalizes the accounting standard. This includes making any necessary revisions or modifications based on the inputs received.

5. Issuance of the accounting standard: Once finalized, the accounting standard is issued by the ICAI. It becomes mandatory for companies to comply with the accounting standard for the preparation and presentation of their financial statements.

It is important to note that while the ICAI issues accounting standards, it is the responsibility of companies, auditors, and regulators to ensure compliance with these standards. Non-compliance can result in penalties and legal consequences.

Overall, the Institute of Chartered Accountants of India (ICAI) is the authority responsible for issuing accounting standards in India through its Accounting Standards Board (ASB). These standards play a crucial role in ensuring the consistency and transparency of financial reporting in the country.