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.

1 and 2 only

2 and 3 only

1 and 3 only

None of these statements is correct