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Double Declining Balance Method Example. The double declining balance depreciation method is a form of accelerated depreciation Depreciation Methods The most common types of depreciation methods include straight-line, double declining balance, units of production, and sum of years digits. The depreciation rate that is determined in this way is known as declining balance rate or accelerated depreciation rate.
Double declining balance (DDB) depreciation is an accelerated depreciation method that depreciates expenses faster in the early years of an asset's life.
You can change factor to another value to influence the rate of depreciation.
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DDB stands for double declining balance, a magnified form of accelerated depreciation method. Begin with the depreciable base, and then calculate the depreciation expense for the period. Subtract the expense from the beginning book value to arrive at the ending book value.