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