Which, if any, of the following statements about accounting concepts and the characteristics of financial
information are correct?

1      The concept of substance over form means that the legal form of a transaction must be reflected in financial
        statements, regardless of the economic substance.
2      The historical cost concept means that only items capable of being measured in monetary terms can be
         recognised in financial statements.
3       It may sometimes be necessary to exclude information that is relevant and reliable from financial statements
         because it is too difficult for some users to understand.

A      1 and 2 only
B      2 and 3 only
C      1 and 3 only
D      None of these statements is correct

D

d