double declining balance

Double-Declining-Balance Depreciation Method

A way of calculating the depreciation of an asset that assumes the asset loses value at double the rate of the straight-line method. One calculates the DDB by depreciating double the straight-line value for the first year, and then depreciating the same percentage for each remaining year of the asset's usable life. DDB is a form of accelerated depreciation.

double declining balance

An accounting method employed to approximate the situation of an asset losing value (depreciating) more rapidly in the early years after acquisition and then more slowly in later years.

References in periodicals archive ?
3, the taxpayer purchased a used aircraft and used an improper double declining balance method of depreciation for three years.
Adopting a slower method of depreciation for most equipment by shifting from double declining balance to 150% declining balance,and
The module includes a full list of depreciation methods including straight-line, double declining balance and MACRS if applicable, and allows users to record depreciation using several methods depending on the asset.
167(b)-4 limitation of the amount available under double declining balance depreciation.