double declining balance method

A method of depreciation in which the historical cost (or revalued amount) of an asset less its estimated residual value (see net residual value) is divided by the number of years of its estimated useful life and the resulting amount is multiplied by two to give the depreciation figure. For example, in the first year an asset costing £12, 000 with an estimated residual value of £2000 and an estimated useful life of 10 years would have a depreciation charge of £2000, i. e. 2 × [(£12, 000 - £2000)-10].

Big dictionary of business and management. 2014.

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  • double declining balance method — UK US noun [S] (also double declining balance, also double declining balance depreciation method, also 200 percent declining balance method) ACCOUNTING ► the method of calculating the loss in the value of an asset over its useful life in which… …   Financial and business terms

  • double declining balance method — A method of depreciation in which the historical cost (or revalued amount) of an asset less its estimated residual value (see net residual value) is divided by the number of years of its estimated useful life and the resulting amount is… …   Accounting dictionary

  • double declining balance — ➔ balance1 * * * double declining balance UK US noun [U] ACCOUNTING ► DOUBLE DECLINING BALANCE METHOD(Cf. ↑double declining balance method) …   Financial and business terms

  • double declining balance depreciation method — UK US noun [S] ACCOUNTING ► DOUBLE DECLINING BALANCE METHOD(Cf. ↑double declining balance method) …   Financial and business terms

  • Double-declining-balance depreciation — Method of accelerated depreciation. The New York Times Financial Glossary …   Financial and business terms

  • double-declining-balance depreciation — Method of accelerated depreciation. Bloomberg Financial Dictionary …   Financial and business terms

  • double-declining-balance depreciation method — ( DDB) An accounting methodology in which the depreciation rate used is double the rate used under the straight line method. In addition, the rate is applied to the full purchase cost of the asset, whereas under the straight line depreciation… …   Financial and business terms

  • 200 percent declining balance method — UK US noun [U] ACCOUNTING ► DOUBLE DECLINING BALANCE METHOD(Cf. ↑double declining balance method) …   Financial and business terms

  • method — meth‧od [ˈmeθəd] noun [countable] a planned way of doing something, especially one that a lot of people use: method of • It is best to consider all methods of figuring your annual income tax before deciding on any one option. method for • A buy… …   Financial and business terms

  • balance — the amount of money remaining in an account. The total of your money in the bank after accounting for all transactions (deposits and withdrawals) is called a balance . Glossary of Business Terms A division of a Securities Account, of a type… …   Financial and business terms

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