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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 MatchesDeclining Balance Method Of DepreciationDeclining Balance Method Of DepreciationDepreciation by a fixed annual percentage of the balance after deducting each yearly depreciation amount. Currency depreciationCurrency depreciationA 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. Earnings before interest, taxes, and depreciation (EBITD)Earnings before interest, taxes, and depreciation (EBITD)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. Depreciation expenses are not included in the costs. DepreciationDepreciationThe 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. Double Declining Balance Method Of DepreciationDouble Declining Balance Method Of DepreciationA use of the declining balance method, but with double the depreciation allowable by straight line. An accelerated method. Further SuggestionsDepreciationCapital depreciation Asset Depreciation Range System Double declining balance depreciation Sum of the years digits depreciation Currency depreciation Earnings before interest, taxes, depreciation, and amortization (EBITDA) Book Depreciation Depreciation tax shield Real appreciation or depreciation Capital appreciation or depreciation Straight line depreciation Depreciation Recapture Of Depreciation Accrued Depreciation |
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