Q3 IAS 7/ MFRS 107 Statement of Cash Flows requires the cash flows of an entity to be classified and presented as cash flows from operating activities (either using the 'direct' or 'indirect' method), cash flows from investing activities and cash flows from financing activities. In general, the users of financial statements are of the opinion that the direct method is the preferred method for presenting the statement of cash flows, but in practice the indirect method is the more commonly used method. Required: Discuss the validity of the above statement