A is corrent because ASC Topic 235 recommends that when financial statements are issued, a statement identifying the accounting policies adopted and followed by the reporting entity should be presented as an integral part of the financial statements. The accounting policies are the specific accounting principles and the methods of applying the principles that have been adopted for preparing the financial statements.
B is incorrect because this item is not an accounting policy and, thus, will not be disclosed in the summary of significant accounting policies. However, the composition of plant assets will be disclosed in other parts of the financial statements.
C is incorrect because it is not an accounting policy and, thus, will not be disclosed in the summary of significant accounting policies. However, the rent expense amount will be disclosed in other parts of the financial statements.
D is incorrect because it is not an accounting policy and, thus, will not be disclosed in the summary of significant accounting policies. However, the maturity dates of long-term debt will be disclosed in footnotes in other parts of the financial statements.
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