Double declining balance depreciation method (DDB)

 

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Double declining balance depreciation method (DDB)

An accounting methodology in which depreciation is accelerated to twice the rate of annual depreciation by the straight-line method.



Double declining balance depreciation method (DDB)

Similar Matches

Capital depreciation

Capital depreciation

See depreciation.


Currency depreciation

Currency depreciation

A decline in the value of one currency relative to another currency. Depreciation occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency.


Accrued Depreciation

Accrued Depreciation

(1) The amount reserved each year in the accounting system for replacement of a building or other asset. (2) The useful life of a property at any given time.


Declining Balance Method Of Depreciation

Declining Balance Method Of Depreciation

Depreciation by a fixed annual percentage of the balance after deducting each yearly depreciation amount.


Depreciation

Depreciation

The charge in a company's accounts which reflects the reduction in value of an asset over time as its useable life is exhausted.Depreciation is charged before calculation of profit, on the grounds that the use of capital assets is one of the costs of being in business and one of the contributors to profit.There are two main methods of depreciation:Straight line: the residual (scrap) value of the asset is deducted from its original cost, and the resultant figure is divided by the estimated life of the asset. The result of that is deducted annually over the life of the asset. So an asset that costs 10,000 and that has a residual value of 200 with a useable life of 4 years is depreciated by 2450 per year.Reducing balance: the amount of annual depreciation is a constant proportion of the cost of the asset.Depreciation has no effect on cash flow. It is just an accounting procedure.


Further Suggestions

Asset Depreciation Range System
Currency depreciation
Book Depreciation
Double Declining Balance Method Of Depreciation
Real appreciation or depreciation
Earnings before interest, taxes, and depreciation (EBITD)
Recapture Of Depreciation
Double declining balance depreciation
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Straight line depreciation
Depreciation
Sum of the years digits depreciation
Capital appreciation or depreciation
Depreciation
Depreciation tax shield


 
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