👉 Prevaluation, in the context of accounting and finance, refers to the act of valuing assets or liabilities before they are recorded on the financial statements. This is done by recognizing the cost of an asset or liability as it becomes available for use. The process starts with the identification of the asset or liability being valued. The costs associated with that asset or liability must be recognized in the period during which it is acquired, making any future cash flows from the asset or liability predictable and measurable. This process
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