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Declining Balance Method
(redirected from Declining-Balance Method)

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Declining Balance Method
A way of calculating the depreciation of an asset whereby one subtracts a certain percentage of its current value each year. For example, suppose an asset costing $100,000 depreciates 10% each year. After the first year, it depreciates to $90,000. In the second year, one deducts 10% from the $90,000, rather than the original $100,000. Thus, the depreciated value after the second year is $81,000. This is a common means of calculating depreciation.
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In addition, from fiscal 2006 machinery and equipment depreciation was changed from the straight-line method to the declining-balance method, which increased the depreciation burden.
Kobe Steel Reports Consolidated Financial Results for the First Half ... by JCN Newswires
Taxpayers should also be aware that this is a straight-line method, unlike other modified accelerated cost recovery system 15-year recovery property, which is generally eligible for the 150% declining-balance method.
15-year recovery period for certain qualified leasehold improvements by Rohrs, Jane / The Tax Adviser
f) Depreciation Depreciation of property, plant and equipment is principally computed by the declining-balance method for assets located in Japan and of certain foreign subsidiaries and by the straight-line method for assets of other foreign subsidiaries based on the following estimated useful lives: Buildings 3 to 60 years Machinery and equipment 2 to 22 years (g) Income Taxes Income taxes are accounted for under the asset and liability method.
Interim Consolidated Financial Statements by PR Newswire
 
 
 
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