DDB

DDB, or Double Declining Balance, is a method of calculating depreciation—how an asset loses value over time. It accelerates depreciation, meaning more expense is recorded in the early years of an asset’s life. This approach uses twice the straight-line depreciation rate, applying it to the asset’s remaining book value each year. As a result, the asset depreciates faster initially and slows down later. DDB is useful for assets that lose value quickly or become obsolete sooner. It provides a more realistic view of an asset’s diminishing worth in its early years, which can be beneficial for tax and financial planning.