👉 Preciation is a concept in accounting that refers to the value of an asset or liability at the end of the period. It is calculated by dividing the carrying amount of the asset or liability by its estimated future undiscounted cash flows from those assets or liabilities, and then multiplying that number by the discount rate used to calculate the present value of these cash flows. In other words, it's a method for determining the fair market value of an asset at a point in time based on discounted cash