Comprehension questions Explain the differences between the presentation of cash flows from operating activities under the direct method and their presentation under the indirect method. Do you consider one method to be more useful than the other? Why? The statement of cash fiows is said to be of assistance in evaluating the financial strength of an entity, yet the statement can exclude significant non-cash transactions that can materially affect the financial strength of an entity. How does AASB 107/IAS 7 seek to overcome this issue