Double Declining Balance (DDB) is an accelerated depreciation method that applies double the straight-line rate to the declining book value each year. It produces larger deductions early and smaller ones later — useful for assets that lose value quickly.
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Pro Tip
Accelerated depreciation is purely an accounting/tax timing difference — it doesn't change total depreciation over an asset's life. It just moves deductions earlier, improving cash flow via earlier tax savings.
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Did You Know?
* Switch to straight-line in year 4 when SL ($10,800) exceeds DDB ($8,640). Technology companies often prefer accelerated depreciation because their equipment (servers, laptops) actually does lose value quickly.
References
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