Double Declining Balance Depreciation

The double declining balance method is an accelerated form of depreciation under which the vast majority of the depreciation associated with a fixed asset is recognized during the first few years of its useful life. This approach is reasonable under either of the following two circumstances:

When the utility of an asset is being consumed at a more rapid rate during the early part of its useful life; or
When the intent is to recognize more expense now, thereby shifting profit recognition further into the future (which may be of use for deferring income taxes).


Sent from my iPhone using Tapatalk