Which, if any, of the following statements about accounting concepts and the characteristics of financial information are correct?
-
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.
-
Information is not material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements.
-
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. 2 and 3 only
B. None of these statements are correct
C. 1 and 2 only
D. 1 and 3 only
|
