Accounting Dictionary - Accounting Terms & Definitions
A: Declining Balance Depreciation
Declining Balance Depreciation is a method of depreciation which results in declining periodic depreciation amounts charged to expenses during the useful life of the asset.
Applying this method of depreciation means that in first years of the fixed asset usage the asset is depreciated quicker, i.e. higher amounts of depreciation are being charged to the depreciation expenses account in the Income Statement. Such charge decreases over the useful period of the asset.
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