Not exactly, I'm afraid...Originally Posted by shinna
The first example: It's his money: 'It's' is a contraction for It is, hence the apostrophe, It - a personal pronoun, is - a verb, It's - the contracted form, the presesnce of the possessive his has nothing to do with it.
It's a CD requires an apostrophe for exactly the same reason...
Its, without an apostrophe, is a pssessive of it, just like in the following example:
It's a huge estate; its perimeter measures over 100 miles.
Hope the above helps.