What Is the Double Declining Balance (DDB) Depreciation

Method?
The double declining balance depreciation (DDB) method, also known as the
reducing balance method, is one of two common methods a business uses to
account for the expense of a long-lived asset. The double declining balance
depreciation method is an accelerated depreciation method that counts as an
expense more rapidly (when compared to straight-line depreciation that uses the
same amount of depreciation each year over an asset's useful life). Similarly,
compared to the standard declining balance method, the double declining
method depreciates assets twice as quickly.

KEY TAKEAWAYS

 The double declining balance (DDB) method is an accelerated

depreciation calculation used in business accounting.
 Specifically, the DDB method depreciates assets twice as fast as the
traditional declining balance method.
 The DDB method records larger depreciation expenses during the earlier
years of an asset’s useful life, and smaller ones in later years.
 As a result, companies opt for the DDB method for assets that are likely to
lose most of their value early on, or which will become obsolete more
quickly.